Question

Nina Karas purchased a used car 3 years ago for $11,425.00. Its current value is $6,897.00. Annual variable costs this year are gasoline. $2524.90: oil and filters, $145.21: new battery, 365.45; and transmission repair $981.33. This year insurance cost $1546.00. registration was $114.95, and loan interest totaled $457.88. Nina drove 19.214 miles this year. Determine the a) total annual cost, and b) the cost per mile to the nearest cent.

Answer 1

a) $6135.72

b) $319.34

Step-by-step explanation:

a) Initial value of car = $11425.00

It depreciated to $6897.00 3 years later

Annual variable cost:

gasoline = $2524.90

oil and filters = $145.21

new battery = $365.45

transmission repair = $981.33

Insurance cost = $1546.00

Registration = $114.95

loan interest totalled = $457.88

Total cost of operating the car will be the sum of the costs above:

`\begin{gathered} \text{Total annual cost = 2524.90 + 145.21 + 365.45 + 981.33+1546 + 114.95 + 457.88} \\ \text{Total annual cost = \$}6135.72 \end{gathered}`

b) Total miles driven by Nina = 19.214 miles

`\cos t\text{ per mile = }\frac{Total\text{ cost }}{nu\text{mber of miles driven}}`
`\begin{gathered} \cos t\text{ per mile = }(6135.72)/(19.214) \\ \cos t\text{ per mile = 319.3359} \\ \\ To\text{ the nearest cent, the cost per mile is \$}319.34 \end{gathered}`