The Real Cost of Car Ownership. Suppose you take out a SO down payment loan to buy a car. Your monthly payments on the loan are $260. In addition to the loan payments, you must pay auto insurance with a semiannual (twice a year) premium of $480, an annual registration fee of $240, an estima ted $50 per month for gas and maintenance, and $30 per month for a campus parking permit.

a. What are the monthly costs of owning the car> What percentage of the total monthly cost is the loan payment?

b. Suppose that, as part of your student fees, you can buy a bus pass that covers all your travel to and from campus. The cost of the bus pass is $90 for each of two semesters. How much would you save per month during a 9-month school year with the bus pass?