David drives a 12-year-old van that they already own. Lena drives a nearly new car for which they borrowed $5,500 at 8.5% annual interest for four years. Calculate the
monthly payment on their car loan. The yearly insurance premium
on the new car is $1,149, and on David's van the premium is $726. Each car gets a $25
oil change and lubrication twice a year. During the year David's van needed $500
in repairs. Together the vehicles consumed 808 gallons of gasoline in a year at an
average price of $2.55 a gallon. The only other transportation cost for the family was
$824 in airfare to visit Lena's parents in Canada.