\(\$ 1,067,824.80\)

UpStudy Free Solution (verified by Real Tutor)

To find the total cost after 3 years, we need to calculate the costs for the cars, the driver wages, and the fuel/maintenance for each vehicle. Let's go step by step:

1. Cost of purchasing the cars:

Each car costs $18,990, and with an 8% fleet discount, the cost per car is:

\(\text { Discounted price per car} = 18,990 \times ( 1 - 0.08) = 18,990 \times 0.92 = 17,470.80\)  

Since we are purchasing 6 cars:

\(\text { Total cost for cars} = 6 \times 17,470.80 = 104,824.80\)  

2. Driver wages for 3 years:

Each driver earns $45,000 per year. For 6 drivers over 3 years, the total wages are:

\(\text { Total driver wages} = 6 \times 45,000 \times 3 = 6 \times 135,000 = 810,000\)  

3. Fuel/Maintenance for 3 years:

The cost for fuel and maintenance per vehicle per year is $8,500. For 6 vehicles over 3 years, the total cost is:

\(\text { Total fuel/maintenance cost} = 6 \times 8,500 \times 3 = 6 \times 25,500 = 153,000\)  

4. Total Cost after 3 years:

Now, we sum up all the costs calculated:

\(\text { Total cost after 3 years} = \text { Total cost for cars} + \text { Total driver wages} + \text { Total fuel/maintenance cost} \) \(\text { Total cost after 3 years} = 104,824.80 + 810,000 + 153,000 = 1,067,824.80\)  

Final Answer: \(\text { Total cost after 3 years} = \$ 1,067,824.80\)

Key Concepts:

1. Discount Calculation: To find the cost of an item after applying a discount, multiply the original price by the complement of the discount percentage. For example, with a 10% discount, multiply the original price by \(1 - 0.10 = 0.90\).

2. Summation of Costs: When calculating total costs over multiple items or years, sum up the individual costs to get the total expenditure.

Explanation:

- Discount Calculation: When purchasing items in bulk, you might receive a discount. For instance, if an item costs $20,000 and you receive a 5% discount, the discounted price is:

\(20,000 \times ( 1 - 0.05) = 20,000 \times 0.95 = 19,000\)

- Calculating Total Cost of Items: To find the total cost of multiple items, multiply the cost per item by the number of items. For example, if you buy 4 items each costing $19,000:

\(4 \times 19,000 = 76,000\)

- Summing Up Recurring Costs: For recurring annual costs, such as salaries or maintenance, calculate the total for all years. If a yearly cost is $10,000 and it recurs for 3 years:

\(10,000 \times 3 = 30,000\)

Knowing these will allow you to determine the total cost over many items and several years. Now, if you need individualized, prompt service in computations and detailed step-by-step solutions for your finance homework, try UpStudy Math Solver&Calculator. UpStudy has detailed explanations and all the help available to ensure you thoroughly understand each topic well and excel in class. Look Up UpStudy today and succeed!