Determine the total first-year cost of car ownership for Milagros. She just purchased a vehicle valued...

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Determine the total first-year cost of car ownership for Milagros. She just purchased a vehicle valued...

Determine the total first-year cost of car ownership for Milagros. She just purchased a vehicle valued for $21 comma 55021,550 with the following costs:

Auto Loan	: Amount, $21,550; Duration, 4 years; APR, 8.25 percent
Property Taxes	: 1.80 percent of vehicle value/year
Sales Taxes	: 4.31 percent of the sales price
Title and Tags	: $32.81/year
Insurance	: $2,247.58/year
Maintenance and Usage	: $1.52/year

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Answer 1

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NOTE: As given in the question I have calculated the maintanence and usage as 1.52/yr. Please check the same and rectify the changes if needed as it is low

Answer:

APR = 8.25%

Vehicle purchase interest = 0.0825 * 21,550 = 1777.875

Property tax = 1.8% * 21,550 = 387.9

Sales Tax = 4.31% * 21,550 = 928.805

Other costs = 32.81 + 2247.58+1.52 = 2281.91

TCO = 2281.91 + 928.805 + 387.9+1777.875 = 5376.49

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Answer 2

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