Question

Jasper is leasing a car from Bob Boyd Chevrolet for 36 months. $2500was due at signing and there is a title fee of $150 and a license fee of $65.His monthly payment is $325. The lease allows for 10,500 miles a yearwith a $.19 per mile overage charge. At the end of the lease William haddriven 33,000 miles.A. How was the cost of the lease (without mileage)?B. What was the mile overage charge?C. What was the total cost of the lease?

Answer 1

We know that

• The title fee is $150.

,

• The license fee is $65.

,

• The initial cost is $2500.

,

• The monthly payment is $325.

,

• The fee per mile is $0.19.

,

• He drove 33,000 miles.

Based on the given information, we can form the following equation to find the cost without mileage

`C=150+65+2500+325\cdot36=14,415`

The cost without mileage is $14,415.

Then, we find the overage miles

`33000-10500=22500`
`22,500\cdot0.19=4,275`

Hence, the overage charge is $4,275.

The total cost would be the sum

`14,415+4,275=18,690`

The total cost of the lease is $18,690.