Average Costs per Mile Suppose that a certain car has the following average operating and ownership costs.
Operating
$0.28
a. If you drive 30,000 miles per year, what is total annual expense for this car?
Ownership
$0.74
Total
$1.02
int
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b. If the total annual expense for this car is deposited at the end of each year into an IRA paying 7.8% compounded yearly, how much will be saved at the end of nine years? Use the formula A=-
r
n
a. If you drive 30,000 miles per year, the total annual expense for this car is $
(Round to the nearest dollar as needed.)
b. If the total annual expense for this car is deposited at the end of each year into an IRA paying 7.8% compounded yearly, the amount saved at the end of nine years is $0
(Round to the nearest dollar as needed.)