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.

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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

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