Question: Suppose that a certain car has the following average operating and ownership costs. Operating $0.24 A= 1+ a. If you drive 20,000 miles per

Suppose that a certain car has the following average operating and ownership

Suppose that a certain car has the following average operating and ownership costs. Operating $0.24 A= 1+ a. If you drive 20,000 miles per year, what is total annual expense for this car? b. If the total annual expense for this car is deposited at the end of each year into an IRA paying 8.5% compounded yearly, how much will be saved at the end of four years? Use the formula n n LC Average Costs per Mile -1 Ownership $0.68 Total $0.92

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