Question

A used-car costs $5,000. You figure you can get 4 years out of it. You drive 10,000 miles per year. Your car insurance costs $1,200 per year. You figure you'll spend $400 per year on maintenance. Gas costs $4 per gallon, and the car gets 25 miles per gallon. What will your average cost (all costs included) per mile be over the 4 years?

Answer 1

The cost of the car is 5000USD for the 4 years meaning per year it costs 5000/4=1250USD.

Cost per mile of the car

1year =10000miles
10000miles=1250USd
1 mile=?

Cross multiplying we get:

1250/10000=$0.125

Insurance per year =$1200

$1200=10000miles
1 mile=?

Cross multiplying we get:
$0.12

Maintenance per year=$400

$400=10000miles
1mile =?

Cross multiplying we get :

400/10000=$0.04

Gas used:

1gallon 25 miles
How many gallons per mile?

Working out we get :
1/25=0.04gallons.

1gallon=$4
0.04=?

Cross multiplying we get :
0.04 × $4=$0.16

TOTAL COST

0.125 + 0.12 + 0.16 + 0.04=$0.445

$0.445 PER MILE.