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Jackson leased a new car for 3 years. He agreed to pay $1,900 down and a $269 payment each month. He also agreed to pay $0.125 per mile he drove over 30,000 miles. During the 3-year lease period, Jackson drove the car 32,458 miles. Excluding taxes, what was the cost of leasing this car for 3 years?

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Question:

A
$11,891.25

explanation

To calculate the cost of leasing the car for 3 years, we need to consider the down payment, monthly payments, and any additional charges for exceeding the mileage limit.

Down payment: $1,900

Monthly payments: $269 per month for 36 months (3 years) = $9,684

Mileage charge: $0.125 per mile over 30,000 miles, and Jackson drove 32,458 miles.

To calculate the mileage charge, we need to determine the number of miles over the limit:

Number of miles over the limit = Total miles driven - Mileage limit

= 32,458 miles - 30,000 miles

= 2,458 miles

Mileage charge = Number of miles over the limit * Cost per mile

= 2,458 miles * $0.125/mile = $307.25

Now, let's calculate the total cost of leasing the car for 3 years:

Total cost = Down payment + Monthly payments + Mileage charge

= $1,900 + $9,684 + $307.25

= $11,891.25

Therefore, the cost of leasing the car for 3 years, excluding taxes, is approximately $11,891.25.

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