Jacob purchased a car in January for $14,000. Given the following information, what is his total cost of ownership for the first year (rounded to the nearest $100)?
.Monthly loan payment: $293
.Gasoline: $1,818
.First-year depreciation: $3,000
.Auto insurance annual cost: $1,200
.Registration and license: $250
.Sales tax: 5% of sales price
.Regular oil changes: $120

Question

Quizplus · Accepted Answer

The total cost of ownership includes all expenses: loan payments ($293 x 12 = $3,516), gasoline ($1,818), depreciation ($3,000), insurance ($1,200), registration ($250), sales tax (5% of $14,000 = $700), and oil changes ($120). Adding these gives $10,604, rounded to $10,600.

Jacob Purchased a Car in January for $14,000