Question

9 what is the true price of owning a car for five years with the following expenses?
loan repayment amount = $280/month
gas = $75/month
insurance = $110/month
maintenance = $60/month

$31,900
$31,500
$33,010
$32,800

Explanation:

Calculate total monthly expenses

Using the Car Buying Process knowledge point

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Convert years to months

To find the total cost over five years, we convert the time period into months:

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Calculate total cost of ownership

We multiply the total monthly expenses by the total number of months:

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Answer:

• (A) $31,900
• (B) $31,500 (Correct answer)
• (C) $33,010
• (D) $32,800