Question

After purchasing a car, Eleanor adjusts her budget to cover most car-related expenses that may occur....

After purchasing a car, Eleanor adjusts her budget to cover most car-related expenses that may occur. The monthly payment for her loan is $252.77, the cost of car insurance for 6 months is $688.71, the estimated fuel cost per month is $170, and she wants to set aside $800 per year for repairs and other maintenance. How much should Eleanor budget per month for car expenses? Round your answer to the nearest cent.

Homework Answers

Answer #1

Monthly Loan payments towards car = $252.77

Monthly cost of car insurance = $688.71/6 months = $114.79 per month

Estimated Fuel cost per month = $170

Repair and maintenance per month = $800/12 month = $66.67 per month

Eleanor budget per month for car expenses = Monthly Loan payments towards car + Monthly cost of car insurance + Estimated Fuel cost per month + Repair and maintenance per month

Eleanor budget per month for car expenses = $252.77 + $114.79 + $170 + $66.67

Eleanor budget per month for car expenses = $604.23

If you need any clarification, you can ask in comments.    

If you like my answer, then please up-vote as it will be motivating       

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Jean earns $4500 monthly income. Her rent is $950.00 per month, her other bills are $250.00...
Jean earns $4500 monthly income. Her rent is $950.00 per month, her other bills are $250.00 per month, and her car loan requires a $480 per month. a) If Jeans' food costs $150 per week and she estimates other additional expenses to be $250 per month, how much she will have left each month to reach her financial goals? b) Mia is considering buying a new car instead of the old one. Her new car loan will be $560 per...
Yoko is an international graduate student. Her tuition, fees and books are paid for by scholarship...
Yoko is an international graduate student. Her tuition, fees and books are paid for by scholarship fund. Her parents send he a check for $1,000 every month. She also works as a grad assistant earning $800 per month. At the end of September, she had $500 in her bank account. Her monthly expenses are $600 for room and board, $80 for gas, $60 for car insurance, $120 to eat out sometimes, cloths and personal care expenses of $200, and miscellaneous...
The Cash Budget Once we see how the components of the cash budget are calculated, it...
The Cash Budget Once we see how the components of the cash budget are calculated, it is just a matter of putting together an entire cash budget. It almost seems redundant to say, but a cash budget includes only cash items. So if a company makes sales on account, those are not included in the cash budget until cash is received on account. Similarly, a company may have non cash expenses. These are not included in the cash budget. A...
Emma Jones is planning to move this coming summer to Oxford, MS to start her new...
Emma Jones is planning to move this coming summer to Oxford, MS to start her new job at a technology firm. She has not yet decided whether she wants to rent or buy a property in Oxford and she is asking your team to help her make this financial decision. Her monthly housing budget is $1,800.  This budget must cover housing expenses including rent or owner’s costs (example: mortgage, hazard insurance, property taxes, and Home Owner Association fees, if any). A...
Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible...
Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 7% of sales Advertising expense 25% of sales Miscellaneous administrative expense $1,850 per month plus 3% of sales Office salaries expense $17,000 per month Customer support expenses $2,600 plus 4% of sales Research and development expense 5,750 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $115,000,...
1) On March 5, 2015, Steven purchased a new Ford Focus for use of his job....
1) On March 5, 2015, Steven purchased a new Ford Focus for use of his job. The car cost $24,000 (including sales tax), with no trade-in involved. The car was driven 14,000 miles in 2015 and 18,000 in 2016 with usage as follows: 20% for his commute to the office and 80% for business trips. The mileage for 2016 was evenly distributed throughout the year. Steven deduts ACTUAL operating costs for his vehicle, using the 200% declining balance method with...
Geoffrey is the owner of a small grocery store, and is considering buying a car to...
Geoffrey is the owner of a small grocery store, and is considering buying a car to help him transport his wares. He has found a suitable used car online that he was able to negotiate to a price of $40,000. After doing a bit more research, he has found the following additional expenses involved in the purchase: Insurance and registration will cost $510 per year, payable at the start of each year Based on mileage estimates, petrol will cost $220...
Operating Budget, Comprehensive Analysis Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer...
Operating Budget, Comprehensive Analysis Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below. January 10,000 February 10,500 March 13,000 April 16,000 May 18,500 The following data pertain to production policies and manufacturing specifications followed by Ponderosa: Finished goods inventory on January 1 is 900 units. The desired ending inventory for each...
You are the assistant controller for Gnomes Incorporated. After the abysmal failure of their original business...
You are the assistant controller for Gnomes Incorporated. After the abysmal failure of their original business plan, Gnomes has found success by selling various styles of terracotta garden gnomes. You have been asked to prepare the master budget for the quarter ended June 30th, 2016. You have assembled the following information: The garden gnomes sell for $40 each. Recent and forecasted sales (in units) are as follows: January (actual)                                                      800 February (actual)                                                    900 March (actual)                                                     1,800 April                                                                    2,800 May                                                                    3,500...
It is now late May 2018 and you, CPA, have just finished meeting with your partner,...
It is now late May 2018 and you, CPA, have just finished meeting with your partner, Ms. Wong. Ms. Wong wants your help with some clients of hers. One client, Garden Supplies Co. (GSC) has had a new shareholder buy shares. Ms. Wong wants you to tell her if GSC is a resident of Canada for tax purposes in 2018 and describe the personal tax consequences that Mrs. Gardiner will have from her 2018 share sale. You can ignore the...