The average monthly payment on a new car is $523. The interest on a car loan is $8469 a year. The average monthly cost of gasoline is $146. Monthly maintenance and repairs is $99. Registration, fees, and taxes are $145 a year. The average cost of auto insurance is $924 per year. The average yearly depreciation is $1115. What is the total cost of car ownership after five years ?
-$99,345
-$57,105
5 years = 60 months
5(8469+145+924+1115) + 60(523+146+99)
53,265+46,080
To calculate the total cost of car ownership after five years, we need to consider the various expenses associated with owning a car. Let's break down each expense and calculate the total cost.
1. Monthly car payment: The average monthly payment is $523. Multiply this by 12 months to get the annual cost: $523/month * 12 months = $6,276/year.
2. Car loan interest: The interest on the car loan is $8,469/year.
3. Gasoline cost: The average monthly cost of gasoline is $146. Multiply this by 12 months to get the annual cost: $146/month * 12 months = $1,752/year.
4. Maintenance and repairs: The monthly cost is $99, which translates to an annual cost of $99/month * 12 months = $1,188/year.
5. Registration, fees, and taxes: The cost is $145/year.
6. Auto insurance: The annual cost is $924/year.
7. Yearly depreciation: The cost is $1,115/year.
Now, let's calculate the total cost of car ownership:
Total cost = (Car payment + Car loan interest + Gasoline cost + Maintenance and repairs + Registration, fees, and taxes + Auto insurance + Yearly depreciation) * Number of years
Total cost = ($6,276/year + $8,469/year + $1,752/year + $1,188/year + $145/year + $924/year + $1,115/year) * 5 years
Total cost = $19,869/year * 5 years = $99,345
Therefore, the total cost of car ownership after five years is $99,345.
So, the correct answer is -$99,345.
To calculate the total cost of car ownership after five years, we need to add up all the costs over the five-year period.
First, let's calculate the total interest paid on the car loan over five years. The annual interest is $8469, so the total interest over five years is $8469 x 5 = $42,345.
Next, let's calculate the total cost of gasoline over five years. The monthly cost is $146, so the total cost over five years is $146 x 12 x 5 = $8,760.
The monthly maintenance and repair cost is $99, so the total cost over five years is $99 x 12 x 5 = $5,940.
The registration, fees, and taxes cost is $145 per year, so the total cost over five years is $145 x 5 = $725.
The auto insurance cost is $924 per year, so the total cost over five years is $924 x 5 = $4,620.
The yearly depreciation is $1,115, so the total depreciation over five years is $1,115 x 5 = $5,575.
Now, let's add up all the costs:
Car loan interest: $42,345
Gasoline: $8,760
Maintenance and repairs: $5,940
Registration, fees, and taxes: $725
Auto insurance: $4,620
Depreciation: $5,575
Total cost of car ownership after five years = $42,345 + $8,760 + $5,940 + $725 + $4,620 + $5,575 = $67,965
Therefore, the correct answer is -$57,105 is not the total cost of car ownership after five years. The correct answer is -$67,965.