Question

Fred made a $1,500 down payment on a 36-month lease contract. His monthly payments were $290.50. At the end of the lease he was charged $0.18 per mile for 1,200 excess miles driven. What was Fred's total cost of leasing? PLEASE SHOW WORK

Answer 1

The total cost of the monthly payments is $290.50 * 36 months = $10,478.

The total cost of the excess miles is $0.18/mile * 1,200 miles = $216.

The total cost of leasing is the sum of the down payment, the monthly payments, and the excess mileage charge: $1,500 + $10,478 + $216 = $11,194.

Therefore, Fred's total cost of leasing was $11,194.