. Big Country Tours is expanding its business and purchasing a hybrid tour bus. The cost of the bus is $92799.00 plus 5% GST. The company takes out a loan to cover the cost and will pay $1358.00 biweekly (once every two weeks) for a 3-year term. The insurance for the new bus will be $448.90 monthly and the average weekly gas cost will be $686.00. Maintenance for the bus will be approximately $1690.00 every six months. What will be the cost to own and operate this bus every month? Hint: Calculate cost for 1 yr then divide by 12 break down the bi-weekly part good

Question

. Big Country Tours is expanding its business and purchasing a hybrid tour bus. The cost of the bus is $92799.00 plus 5% GST. The company takes out a loan to cover the cost and will pay $1358.00 biweekly (once every two weeks) for a 3-year term. The insurance for the new bus will be $448.90 monthly and the average weekly gas cost will be $686.00. Maintenance for the bus will be approximately $1690.00 every six months. What will be the cost to own and operate this bus every month? Hint: Calculate cost for 1 yr then divide by 12 break down the bi-weekly part good

Answer 1

First, let's calculate the total cost of the bus after adding the 5% GST:

$92799.00 + ($92799.00 x 0.05) = $92799.00 + $4639.95 = $97438.95

Next, let's calculate the total cost of the loan for 3 years:

$1358.00 x 26 (bi-weekly payments in a year) x 3 = $105508

Now, let's calculate the annual costs for insurance, gas, and maintenance:

Insurance: $448.90 x 12 = $5386.80
Gas: $686.00 x 52 = $35672.00
Maintenance: $1690.00 x 2 = $3380.00

Now, let's calculate the total annual cost of owning and operating the bus:

$97438.95 (bus cost) + $105508 (loan cost) + $5386.80 (insurance) + $35672.00 (gas) + $3380.00 (maintenance) = $249385.75

Finally, let's calculate the monthly cost:

$249385.75 / 12 = $20782.14

Therefore, the cost to own and operate this bus every month will be approximately $20782.14.