what is the cost per mile over the course of a year for a $30,000 car that depreciates 20%, with costs shown…

what is the cost per mile over the course of a year for a $30,000 car that depreciates 20%, with costs shown in the table, and that has been driven for 10,000 miles? expense yearly cost or rate gas $400.00 insurance $400.00 oil $90.00 registration $100.00 depreciation 20% $? per mile round to the nearest cent.

what is the cost per mile over the course of a year for a $30,000 car that depreciates 20%, with costs shown in the table, and that has been driven for 10,000 miles? expense yearly cost or rate gas $400.00 insurance $400.00 oil $90.00 registration $100.00 depreciation 20% $? per mile round to the nearest cent.

Answer

Explanation:

Step1: Calculate depreciation cost

The car costs $30000$ and depreciates $20%$. So the depreciation cost is $30000\times0.2 = 6000$.

Step2: Calculate total cost

Sum up all costs. Gas cost is $400$, insurance cost is $400$, oil cost is $90$, registration cost is $100$ and depreciation cost is $6000$. Total cost $C=400 + 400+90 + 100+6000=6990$.

Step3: Calculate cost - per - mile

The car is driven for $10000$ miles. Cost per mile $=\frac{C}{10000}=\frac{6990}{10000}=0.699$.

Answer:

$0.70$