Question

5. A new car is offered for lease for $291 per month for

24 months with a down payment of $458. The lease
allows for 12,000 miles per year and includes a
$0.35 per mile charge for miles driven in excess of
that amount. At the end of the lease, the car has
been driven a total of 32,425 miles. What is the cost
for two years for this vehicle?

$6,984
$10,390.75
$7,469
$18,817.75
$11,669​

Answer 1

Answer: B

$10,390.75

Explanation:

Given that the lease = $291 per month

Lease pay = 291 × 24 = $6984

Time = 24 months

down payment = $458.

The lease allows for 12,000 miles per year and includes a $0.35 per mile charge for miles driven in excess of that amount.

For the car to be driven a total of 32,425 miles.

Excess = 32425 - 24000 = 8425 miles

Charges = 0.35 × 8425 = $2948.75

The cost for two years for this vehicle will be

2948.75 + 458 + 6984 = $10390.75