## Related questions with answers

Nina Karas purchased a used car 3 years ago for $11,425.00. Its current value is$6,897.00. Annual variable costs this year are gasoline, $2,524.90; oil and filters,$145.21; new battery, $65.45; and transmission repair$981.33. This year insurance cost $1,546.00, registration was$114.95, and loan interest totaled $457.88. Nina drove 19,214 miles this year. Compute the (a) depreciation, (b) annual costs, and (c) cost per mile.

Solution

VerifiedThe goal of this activity is to determine the **a)** annual depreciation by getting the difference between the purchase price and today's value of vehicle, then divide it by the number of year it is owned; **b)** the annual costs by getting the summation of all expenses for the vehicle; and **c)** the cost per mile by dividing the total cost by the number of miles the vehicle traveled.

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