Answer:
3 years
Explanation:
The following are given in the question:
ISS = Isabella's saving = $15,000
COC = Cost of the car = $12,700
COI = Cost of insurance = $600 per year
Step 1: Calculation of saving remaining after car purchase
SRACP = ISS - COC ........................................ (1)
Where SRACP denotes saving remaining after car purchase.
Substituting the values above into equation (1), we have:
SRACP = $15,000 - $12,70 = $2,300
Therefore, the saving remaining after car purchase is $2,300.
Step 1: Calculation of the number of full years the remaining saving can cover car insurance
NFYRSCI = SRACP ÷ COI ................................. (2)
Where NFYRSCI denotes the number of full years the remaining saving can cover car insurance.
Also, substituting the values above into equation (2), we have:
NFYRSCI = $2,300 ÷ 600 = 3.83 years or 3 full years
Therefore, the number of full years the remaining saving can cover car insurance is just 3 full years.
Note that we are concerned about full years. Therefore, the decimal numbers of 0,83 (i.e. 3.83 - 3 = 0.83) which gives 10 months (i.e. 0.83*12 = 10 months) is not relevant since it is not up to a year.