Question

Brooke believes she's getting a great deal on a car - zero down and

payments of only $260 per month for 6 years (72 months). She estimates
the additional costs of owning a car: insurance - $960 per year, registration
- $240 per year, and gas and maintenance of $175 per month.
How much will this car cost her over the life of the loan?

Answer 1

First, you need to calculate the total cost of the loan. The monthly payment is $260, and there are 72 payments over 6 years. The total cost of the loan is 72 months * $260/month = $18,720

Next, you calculate the total cost of owning the car for 6 years. The insurance will cost $960 per year, so over 6 years it will cost $960/year * 6 years = $5,760

The registration will cost $240 per year, so over 6 years it will cost $240/year * 6 years = $1,440

The gas and maintenance will cost $175 per month, so over 6 years it will cost $175/month * 72 months = $12,600

Now you can add up all the costs to find the total cost of owning the car over the life of the loan:

Loan cost + insurance cost + registration cost + gas/maintenance cost

= $18,720 + $5,760 + $1,440 + $12,600

= $38,520

Therefore, the car will cost Brooke $38,520 over the life of the loan, including all additional costs of owning the car.

Answer 2

$38,520

Explanation:

To calculate the total cost of the car, we need to consider the following expenses:

Monthly payments:

$260/month x 72 months = $18,720

Insurance:

$960/year x 6 years = $5,760

Registration:

$240/year x 6 years = $1,440

Gas and maintenance:

$175/month x 12 months/year x 6 years = $12,600

Therefore, the total cost of the car over the life of the loan is:

$18,720 (monthly payments) + $5,760 (insurance) + $1,440 (registration) + $12,600 (gas and maintenance) = $38,520

So, while Brooke may think she's getting a good deal with zero down and low monthly payments, the total cost of the car over the life of the loan is quite high. It's important to consider all the additional costs associated with owning a car before making a decision to purchase one.