Not logged in? Join one of the largest Insurance Forums on the Internet! Join Now!   Latest blog post: Things to Know Before Buying Travel Insurance

Advertisments:


Sponsor Links

Affordable Pet Insurance
Travel Insurance Comparison


Difficult math question?

Anything related to Car Insurance, Car Insurance Quotes, Insurance Claims

Difficult math question?

Postby otaktay43 » Thu Oct 11, 2012 12:59 am

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?
otaktay43
 
Posts: 456
Joined: Fri Apr 01, 2011 9:23 am

Difficult math question?

Postby cochlain » Thu Oct 11, 2012 1:03 am

Total Cost = Cost Car + 4*Car Insurance + 4*Maintenance + 4*Miles/Year * (cost/gallon) / (miles/gallon)

Total Cost = $5,000 + 4*$1200 + 4*$400 + 4*10,000*$4/25 = $17,800

Cost/Mile = $17,800 / (40,000 miles) = $0.445 / mile = 44.5 cents per mile.
cochlain
 
Posts: 460
Joined: Thu Mar 31, 2011 12:14 pm

Difficult math question?

Postby whitney83 » Thu Oct 11, 2012 1:06 am

32.5 cents a mile
whitney83
 
Posts: 436
Joined: Thu Mar 31, 2011 11:12 am

Difficult math question?

Postby kye » Thu Oct 11, 2012 1:08 am

Hard? This is EASY.
Ok lets first find the basiccosts
5000(car)+4800(insurance over 4 years)1600(insurance over 4 years)=11400.
Ok, in total you will be driving 40,000 miles. 40,000 divided by 25 (how much gallons you need/have)=1600. You will need 1600 gallons.
1600x4(price per gallon) is 6400.
gas is 6400 dollars.
Next add up the costs 11400+6400=17800
Now divide your total cost by the 40,000 miles you will be driving.
17800 divided by 40,000 is .445
This isn't really valid, but it is a math question, so 44 and a half cents per mile.
kye
 
Posts: 486
Joined: Fri Apr 01, 2011 3:46 pm


Return to Car Insurance

 


  • Related topics
    Replies
    Views
    Last post