Question

Last year, Bill Novato drove 38,986 miles and had theseexpenses: gas, $7,787.25; maintenance and miscellaneous,$318.80; parking and tolls, $325.00; tires, $300.00; wash andwax, $75.00; insurance, $614.80; license, $74.90; loan interest$412.20 and depreciation, $5,780.00. What was his cost per mile last year?

Answer 1

To find the cost per mile we just need to divide all the expenses Bill had on the car by the amount of miles he drove. The total amount of expenses can be found by adding all the expenses together.

`\begin{gathered} 7787.25+318.8+325+300+75+614.8+74.9+412.2+5780 \\ =15687.95 \end{gathered}`

The total expense of the car was $15,687.95.

Dividing this value by the total amount of miles driven, we have

`(15687.95)/(38986)=0.40239957933\ldots`

The cost was approximately 0.40$/mile.