Amanda and college

Question

Amanda is 18 years old, and she plans to go to college for four years to study computer animation. She has 2 choices: live at home and buy a car to travel 30km each way to college every day. or live in residence and pay $15000 room and board each year. A Chevrolet cyclone used car cost $10495, Brand new cost $12,895 and it consumes 8 liters per 100km. If Amanda buys a car she will have to pay sales tax of 13%. She will also have to pay for regular maintenance, insurance, and vehicle plate fee.

Answer 1

Live on campus

Option 1:   $15000 x 4 = $60000

 

 

Stay home

Option 2:

     No, she is NOT getting the new car. First car is always the klunker.  $10485 

 

     Gas:   30km x 2 = 60 km per day

              60 km per day x 5 days per week = 300 km per week

              300 km per week x 52 weeks per year =  15600 km per year

               15600 km per year x 4 years = 62400 km

               62400 km / 100 km * 8 L = 4992L

                1 gallon is APPROXIMATELY 4 L, so 4992L = 1248 gallons

                1248 gallons x $2.50/gallon = $3120

 

 Sales tax:  13% x 10495 = 1364.35

 

Total thus far is $14969. As you mentioned, there is regular maintenance, registration and license fees, plus insurance.

  No data was given for these. Let's strip the insurance down to the bare minimum so that she is legally allowed to drive

the car, say $1000 annually. That's another $4K.  regular maintenance like oil changes, lets say another $500 per year,

so that another $2000. license and registration say $150 annually. SO that's aother $600. So estimate another $6600.

Now it's up to $21569, but these numbers are SOFT.

 

You can figure out the rest.