Solutions
We know a used car is $ 5,000. You can drive 10, 000 miles per year in that car for 4 years. The care insurance per year would be $ 1,200. You know that you will spend $ 400 on maintenance. The gas will cost $ 4 per gallon and the car gets 25 miles per gallon.
⇒ (car) = $ 5,000
⇒ (Miles per year) = 10,000
⇒ ( Insurance per year) = $ 1,200
⇒ ( Maintenance ) = $ 400
⇒ (Gas) = $ 4 per gallon
To solve this problem we have to do
Total Cost = Cost Car + 4 × Car Insurance + 4 × Maintenance + 4 × Miles/Year × (cost/gallon) / (miles/gallon)
We multiply by 4 since he figured out the car will last 4 years.
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Calculations
Total Cost = Cost Car + 4 × Car Insurance + 4 × Maintenance + 4 × Miles/Year × (cost/gallon) / (miles/gallon)
Total Cost = (car) $5,000 + (Car Insurance) 4 × $1200 + (Maintenance) 4 × $400 + (cost/gallon) 4 × 10,000 (miles/gallon) × $4/25 = $17,800
Now we have to find per mile
We know that 10,000 miles = 1 year
To convert to 4 years multiply by 4 = 40,000 miles
Cost/Mile = $17,800 / (40,000 miles)
= $0.445 / mile
= 44.5 cents per mile.
Answer = 44.5 cents per mile.
