Pierre Martina is comparing the cost of credit to the cash price of an item. If Pierre makes a $120 down payment and pays $38 a month for 24 months, how much more will that amount be than the cash price of $697? Amount of difference____________

You have gathered the following vehicle costs:

	Vehicle Costs
	Annual depreciation	$	3,900	Annual mileage		17,700
	Current years loan interest	$	1,380	Miles per gallon		24
	Insurance	$	1,200	Average gasoline price	$	2.50	per gallon
	License and registration fees	$	73	Oil changes/repairs	$	469
	Parking/tolls	$	471

(a) Calculate the annual variable and fixed costs of the vehicle

annual variable cost_____

annual fixed cost_______ (b) Compute the operating cost per mile.

Operating cost__________ cents per mile.