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

Below are the choices that can be found elsewhere. 

a) $0.20 per mile 
b) $0.25 per mile 
c) $0.40 per mile 
d) $0.445 per mile 

Cost of car = $5000 

Maintenance for 4 years = $1600 

Insurance for 4 years = $4800 

Fuel cost for 4 years = 40,000 /25 = 1600 gallons = $ 6400 

ADD ALL = $17800 

cost per mile = 17800/40,000 = 0.445 $ per mile 

ANSWER is d