Chapter 9 Formulas Flashcards
1
Q
Sticker Price
A
Base Price + Options + Destination Charge
2
Q
Dealer’s Cost
A
(Base Price x Dealer’s Percent) + (Options Price x Dealer’s Percent) + Destination Charge
3
Q
Average Retail Price
A
Average Retail Value + Additional Options - Options Deductions - Milage Deductions
4
Q
Annual Base Premium
A
Liability + Comprehensive + Collision
5
Q
Annual Premium
A
Base Premium x Driver Rating Factor
6
Q
Cost per Mile
A
(Annual Variable Cost + Annual Fixed Cost)/Number of Miles
7
Q
Steps for finding the Cost per Mile (if the total annual cost isn’t clearly stated)
A
- Find depreciation
(Original Price-Today’s Price)/ Number of Years Owned - Find the total annual cost
annual variable cost + insurance per yr + registration fees + depreciation - Find Cost per Mile
Use formula for Cost per Mile
8
Q
Total Lease Cost
A
(Number of Payments x Amount of Payment) + Deposit + Title Fee + License Fee
