Laura estimates that his car costs $290 per month in fixed expenses, such as insurance and registration. Additionally, he calculates gas, oil, and maintenance at 16 cents per mile. Laura typically drives 1,250 miles each month on average. How much would Laura expect his total car costs to be in May if he drives 1,680 miles? help

Laura estimates that his car costs $290 per month in fixed expenses, such as insurance and registration. Additionally, he calculates gas, oil, and maintenance at 16 cents per mile. Laura typically drives 1,250 miles each month on average. How much would Laura expect his total car costs to be in May if he drives 1,680 miles? help

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter8: Vehicle And Other Major Purchases

Section: Chapter Questions

Problem 1FPC

See similar textbooks

Similar questions

Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 36 cents per mile. Aldo estimates that his i xed costs per year such as taxes, insurance, and depreciation are $2,052. The direct or variable costs such as gas, oil, and maintenance average about 14.4 cents per mile. How many miles must he drive to break even?
Vashti has a suburban home within walking distance of the railroad. She commutes to work in the city at a cost of $366.50 a month. She also rents a car every weekend, which costs $450 a month including insurance and fuel. She is considering purchasing a new car for cash to replace commuting and rental costs. It would cost $22,000, get 31 miles per gallon, and have an estimated resale value of $8,000 after five years. After buying this car, Vashti would drive 20,000 miles per year and have maintenance and repairs of $1,400 per year, insurance of $1,500 per year, and fuel costs of $2.50 per gallon. Assume that all costs occur at the end of the year and that she sells the car at the end of the fifth year. If Vashti's discount rate is 7 percent after tax, should she purchase the car?
Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 52 cents per mile. Aldo estimates that his fixed costs per year-such as taxes, insurance, and depreciation-are $2,400. The direct or variable costs such as gas, oil, and maintenance-average about 21.5 cents per mile. How many miles must he drive to break even? (Do not round intermediate calculations. Roundup your answer to the next whole number.) Break even point miles
Aldo Redondo drives his own car on company business. His employer reimburses him for such travel at the rate of 45 cents per mile. Aldo estimates that his fixed costs per year-such as taxes, insurance, and depreciation-are $2,000. The direct or variable costs- such as gas, oil, and maintenance-average about 18.5 cents per mile. How many miles must he drive to break even? Note: Do not round intermediate calculations. Roundup your answer to the next whole number. Break even point miles
Abdul works full-time in a bookstore. He earns a take-home salary of $580 a week. His expenses are $770 a month for rent and utilities, $41 a month for his cell phone, $80 a week for groceries, and $150 every two weeks for miscellaneous expenses. How much can Abdul save each month?
Kim is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $970 per month. Her employer deducts $221 for taxes from her monthly pay. Kim also pays $98 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $109 per month. Help Kim make her decision by calculating her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers as a percent rounded to 2 decimal places.) Debt Payments-to-Income Ratio Ratio with college loan Ratio without college loan
LaMont works for a company in downtown Chicago. The firm encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $270 per month. a. If LaMont receives one pass (worth $270) each month, how much of this benefit must he include in his gross income each year? b. If the company provides each employee with $270 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?
molly has a part time job that pays her a gross income of $135 each week. Her withholding each week is $59.50. She also baby sits. Her saving strategy is to deposit 20 Percent of what she takes home. This week she earned $35 from two baby sitting jobs. How much should she deposit?
LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $285 per month. Required: If LaMont receives one pass (worth $285) each month, how much of this benefit must he include in his gross income each year? If the company provides each employee with $285 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?
LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $284 per month. If LaMont receives one pass (worth $284) each month, how much of this benefit must he include in his gross income each year? If the company provides each employee with $284 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $36,000. The object is to save on horse transporter rentals. Marsha had been renting a transporter every other week for $201 per week plus $1.05 per mile. Most of the trips are 90 miles in total. Marsha usually gives the driver a $45 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $.46 per mile. Insurance costs for Marsha’s transporter are $1,250 per year. The transporter will probably be worth $16,000 (in real terms) after eight years, when Marsha’s horse Nike will be ready to retire. Assume a nominal discount rate of 10% and a forecasted inflation rate of 4%. Marsha’s transporter is a personal outlay, not a business or financial investment, so taxes can be ignored. Hint: All numbers given in the questions are in real terms. Assume CF at end of year, for simplicity. Calculate the NPV of the investment. (Do not round intermediate calculations.…
Marsha Jones has bought a used Mercedes horse transporter for her Connecticut estate. It cost $54,000. The object is to save on horse transporter rentals.Marsha had been renting a transporter every other week for $219 per day plus $1.95 per mile. Most of the trips are 80 or 100 miles in total. Marsha usually gives Joe Laminitis, the driver, a $30 tip. With the new transporter she will only have to pay for diesel fuel and maintenance, at about $0.64 per mile. Insurance costs for Marsha’s transporter are $2,150 per year.The transporter will probably be worth $34,000 (in real terms) after eight years, when Marsha’s horse Spike will be ready to retire. Assume a nominal discount rate of 7% and a 4% forecasted inflation rate. Marsha’s transporter is a personal outlay, not a business or financial investment, so taxes can be ignored.Calculate the NPV of the investment. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)