Question

A used-car cost 5000. You figure you can get 4 years out of it. You drive 10000 miles per year. Your car insurance costs 1200$ per year. You figure you’ll spend 400$ per year on maintenance. Gas cost 3$ per gallon and the car gets 25 miles per gallon. What will be your average cost (all cost included) per mile over 4 years ?

Answer 1

$0.405

Step-by-step explanation:

The average cost per mile:

Cost per year:

Insurance : $1200

Gas At $3 per gallon: car performance is 25 miles per gallon. In one year, the car is driven for 10,000 miles.

Consumption per year = 10,000/25 x 3= $1200

maintenance $400

Cost for fours years

Car cost: =$5000

Insurance : $1,200 x 4 =$4,800

Gas costs: $1200 x 4 =$4800

Maintenance :$400 x 4 = $1600

Total costs for four years= $5000+ $4800+ $4800+$1600

=$16,200

Average cost per mile

=$16,200/ 40,000

=

The average cost per :

Cost per year:

Insurance : $1200

Gas At $3 per gallon: car performance is 25 miles per gallon. In one year, the car is driven for 10,000 miles.

Consumption per year = 10,000/25 x 3= $1200

maintenance $400

Cost for fours years

Car cost: =$5000

Insurance : $1,200 x 4 =$4,800

Gas costs: $1200 x 4 =$4800

Maintenance :$400 x 4 = $1600

Total costs for four years= $5000+ $4800+ $4800+$1600

=$16,200

Average cost per mile

=$16,200/ 40,000

=$0.405