You purchase a car that has an initial cost of $30,000. Property tax on the car will be $500 when you purchase the car and will decrease by 5% per year because the county estimates that the tax value will depreciate. Fuel cost in the first year is $1,050 and is estimated to increase by $125 per year because of expected increases in fuel cost. The cost to insure this car with you as the driver is estimated to be $1,500 in the first year, and to decrease by 10% per year as the car loses value and as you age into a less risky driver category. Maintenance and repair costs are expected to be $100 in the first year, and to increase by Fall 2019 CE 250 Module 3 $150 per year. At the end of 10 years, you plan to sell the car and expect that you can get $5,000 as the salvage value. The interest rate is 7%, compounded annually.

a) What is the equivalent annual cost of the purchase price of the car ($/year)?

b) What is the equivalent annual cost of the property tax on the car ($/year)?

c) What is the equivalent annual fuel cost ($/year)?

d)What is the equivalent annual insurance cost ($/year)?

e) What is the equivalent annual maintenance and repair cost ($/year)?

f) What is the equivalent annual salvage value ($/year)?

g) Suppose that the equivalent uniform annual cost is $7,000 per year (this is not the correct answer to a previous part), and the vehicle is driven 15,000 miles per year. What is the average cost per mile ($/mile)?