Question

Rashid Zabka leased a 4-door sedan for $199.88 per month for48 months. He paid a deposit of $1,515.00 a title fee of $95.00,and a license fee of $65.00. The lease carried a stipulation thatthere would be a $0.10-per-mile charge for all miles over 60,000.He drove the car 67,640 miles. What is the total cost of leasingthe vehicle?

Answer 1

Given the word problem, we can deduce the following information:

1. Rashid Zabka leased a 4-door sedan for $199.88 per month for 48 months.

where:

Number of payments = 48

Amount of payment = $199.88 per month

2. Rashid Zabka paid:

Deposit = $1,515.00

Title Fee=$95.00

License Fee = $65.00

3. The lease carried a stipulation that there would be a $0.10-per-mile charge for all miles over 60,000. Since Rashid Zabka drove 67,640 miles, the charge would be:

Additional charge = (67,640-60,000)($0.10)=$764

To determine the total cost of leasing, we use the formula:

Total Cost of Leasing = ((Number of Payments)(Amount of

Payment))+Deposit+Title Fee+License Fee+Additional

Charge

We plug in what we know:

Total Cost of Leasing =((48)( $199.88))+$1,515.00+$95.00+$65.00+$764

Calculate

Total Cost of Leasing =$12,033.24

Therefore, the total cost of leasing the vehicle is $12,033.24.