Name:
Owning and Operating Costs
Example 1: A car company calculates the annual cost of a specific small car to be $10512.
a) Calculate the monthly cost of the car.
Monthly cost = annual cost ÷ 12
= $10512 ÷ 12
= $876 per month
b) Assuming that 24 000 km are driven in a year, calculate the cost per kilometre to drive this car.
Cost per kilometre = annual cost ÷ kilometres driven per year
= $10512 ÷ 24 000
= $0.438 per kilometre (or 43.8 ¢/km)
Questions
1. Last year the annual cost of George’s car was $11 318. He drove the car 21 085 km.
a) Calculate the monthly cost of George’s car.
b) Calculate the cost per kilometre of George’s car.
2. Last year the cost per kilometre of Tanya’s car was $0.452 / km. She drove the car 19 038 km.
a) Calculate the annual cost of Tanya’s car.
b) Calculate the monthly cost of Tanya’s car.
Example 2: How much does it cost to fill up a tank that holds 50L when gas is $1.19/L?
Cost of Gas = litres of gas x cost per litre
= 50 x 1.19
= $59.50
3. The cost of gas is a major cost for driving.
a. How much does it cost to fill up a tank that holds 60L when gas is $1.07/L?
b. How much does it cost to fill up a tank that holds 60L when gas is $1.329/L?
4. Maintenance and repairs cost a lot, depending on the model of car. As your car gets older, it needs more repairs. Mrs. Evans’ car needs 4 new tires, which are $95 each. Installation and balancing cost $20 per tire.
a) What is the total cost of putting on these new tires before tax?
b) What is the total cost of putting on these tires after tax?
5. What are some costs when you buy a car? Give at least 3.
6. What are some costs when you lease a car? Give at least 2.