Personal Finance 1st Edition by Jack R. Kapoor

Exercise 27

Calculating Motor Vehicle Operating Costs. Using Sheet 38 in the Personal Financial Planner, calculate the approximate yearly operating cost of the following vehicle. (Obj. 2)

Annual depreciation, $2,500	License and registration fees, $65
Annual mileage, 13,200	Average gasoline price, $3.68 per gallon
Current year’s loan interest, $650	Oil changes/repairs, $370
Miles per gallon, 24	Parking/tolls, $420
Insurance, $680

Step 1 of 4

Calculate the operating cost of the following vehicle:

To calculate the operating costs, first we calculate the fixed and operating costs, then gasoline costs and then operating costs.

Given:

Annual depreciation	$2,500
Annual mileage	13,200
Current year’s loan interest	$650
Miles per gallon	24
Insurance	$680
License and registration fees	$65
Average gasoline price	$3.68 per gallon
Oil changes/repairs	$370
Parking/tolls	$420