Answered

Nerida Kyle is thinking of buying a car to avoid taking Lyft to work. She is using the cost-benefit principle to evaluate this decision and is calculating the costs and benefits to owning the car over the next year. She's gathered the following information to help her make her decision: The car costs $15,000 to purchase, but she can resell it after a year of use for $13,500. She thinks gas will cost her about $1,200 for the year. The annual insurance premium for her car is $800. Maintenance and repairs will cost about $300 for the year. Using Lyft to get to work would cost her $4,000 for the year. The cost of the car for the year is:



Answer :

The cost of the car for the year is $3800 for Nerida Kyle and it will cost less than lyft.

The cost of the car for the year will be calculated based on the amount she will spend in total on the car. The formula to be used is -

Total cost = Cost price of the car - Selling price

Cost price of car will be sum of all the expenses, calculated as follows -

Cost price of the car = 15000 + 1200 + 800 + 300

Performing addition on Right and Side of the equation

Cost price of the car = $17,300

Total cost for the year = 17,300 - 13,500

Performing subtraction on Right and Side of the equation

Total cost for the year = $3,800

Hence, Nerida Kyle will spend $3,800 on car which is better than lift.

Learn more about addition -

https://brainly.com/question/24536701

#SPJ4

Other Questions