9.

FINANCIAL MATHEMATICS

OWNING A CAR
When buying a car, as well as the initial purchase price (or loan repayments), you need to
consider other on-road costs such as insurance, registration and stamp duty. Running costs of a
car include fuel consumption, servicing, repairs and tyres. Accidents and speeding fines are
also hidden costs of owning a car, with driver distraction causing 44% of road accidents.

CHAPTER OUTLINE
F1.3, S1.1 9.01 Car insurance
F1.3 9.02 Stamp duty
F1.3 9.03 On-road costs
F1.3 9.04 Running costs
F1.3 9.05 Fuel consumption and prices
F1.3 9.06 Choosing the best car
IN THIS CHAPTER YOU WILL:
• identify the different types of car insurance available and the factors that affect insurance
premiums
• calculate on-road costs for buying a car, including finance, stamp duty, registration and insurance
• calculate running costs of owning a car, including service and repairs
• identify fuel consumption as a rate and use it to calculate the amount of fuel used on a trip
• consider sustainability when choosing a vehicle to purchase; for example, cost of fuel, recyclable
materials and renewable energy sources
• compare the costs of owning different types of car, taking into account economic and
sustainability factors

iStock.com/welcomia
 TERMINOLOGY
comprehensive insurance Compulsory Third Party (CTP) insurance excess
fuel consumption green slip on-road costs
premium stamp duty Third Party Property insurance
vehicle registration

WS
SkillCheck
Homework 9
Assignment

1 Copy and complete:

a $148 per month = $............ per year
b $350 per fortnight = $............ per year
c $276 per week = $............ per year
d $2754 per year = $............ per month
e $182 per month = $............ per week [Hint: find amount per year first]

2 A loan repayment is $128 per fortnight. To the nearest cent, how much is this:
a per week? b per year? c per month?

3 Find these percentages, correct to the nearest cent:

a 3% of $25 680 b 2.5% of $64 320 c 11% of $12 700
d 4% of $2564 e 6.5% of $68 530 f 1.9% of $72 350

4 If a car is stolen in Australia every 10 minutes, how many cars are stolen:
a per day? b per week? c per month? d per year?

5 A Range Rover 4WD has a 150 L fuel tank. What is the cost, to the nearest cent, to
fill the car with fuel at $1.69 per litre?

6 If the buyer of a $65 000 car received a 10% discount for paying cash then a further
3% discount in the sale, how much did he pay for the car?

356 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

9.01  Car insurance WS

Car insurance is a financial scheme to protect you in the event of a car accident. In return Homework
Investigating
for paying a regular fee, called the premium, the insurance company agrees to pay you a car insurance

large amount to cover the costs of repair or replacement if you have an accident.

Types of car insurance

There are three main types of car insurance.
• Compulsory Third Party (CTP) insurance protects vehicle owners and drivers from
legal liability for personal injury or death to any other person (‘third party’) including
drivers, passengers, cyclists and pedestrians. It is also called ‘green slip’ insurance because
of the colour of the insurance document and it must be obtained before a vehicle can be
registered.
• Third Party Property insurance is optional and covers damage to other vehicles and
property in an accident where you are at fault. It does not cover damage to your vehicle.
• Comprehensive insurance is optional and covers damage to all vehicles and property,
including your own. It also protects against theft, attempted theft, accidental loss, fire,
vandalism or hail damage to your vehicle.

EXAMPLE 1

Mia bought a second-hand

utility vehicle (‘ute’) for her
farm. Her comprehensive
insurance was $631.08 upfront
or $61.75 per month. How
much extra would Mia pay per
year if she chose to pay her
insurance per month?
iStock.com/jodie777

Solution

Cost when paid upfront    = $631.08

Cost when paid monthly = $61.75 × 12
= $741.00
Difference = $741.00 – $631.08
= $109.92
Mia pays an extra $109.92 if she pays per month.

ISBN 9780170413565 9. Owning a car 357

 Insurance premiums and discounts
A motor vehicle insurance premium depends on factors such as vehicle type, driver age and
driving record, where and how your vehicle is stored (garage, driveway, street parking) and
whether the vehicle is financed or fully paid off. Some insurance companies give a loyalty
discount if you have been with them for several years, a multi-policy discount for having
more than one type of insurance policy with them, and a no claim discount if you have not
made a claim for several years.
If you have an accident and it is your fault, an assessor will view the damage and assess
the costs involved. You will be asked to complete a claim form and pay an excess, that is,
some money upfront before the company pays the rest. The excess is stated in your policy
document and some customers agree to pay a larger excess in return for a cheaper policy.

EXAMPLE 2

This table shows five examples of comprehensive car insurance premiums.

Driver Driver age Town where Car make Car year Basic premium
gender vehicle is
garaged
male 55 Goulburn Ford 2004 $508
female 33 Wollongong Mazda 2015 $657
female 24 Dubbo Mitsubishi 2009 $1339
male 21 Newcastle Holden 2014 $1161
female 45 Bathurst Hyundai 2016 $432

Calculate the premium for:

a the female from Bathurst who gets a 10% loyalty discount
b the 55-year-old Ford driver who pays a 5% surcharge for an older car
c the owner of the Mitsubishi who pays a 13% levy as the car is financed
d the Mazda driver from Wollongong who gets a discount of 2.5% for a good driving
record as well as a further discount of 1.7% for loyalty.

Solution

a Premium = $432
Discount = 10%
Discounted premium = 90% × $432
= $388.80

358 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 b Premium = $508
Surcharge = 5%
Actual premium = 105% × $508
= $533.40
c Basic premium = $1339
Levy = 13%
Actual premium = 113% × $1339
= $1513.07
d Basic premium = $657
Discount = 2.5% followed by 1.7%
Discounted premium = $657 × 97.5% × 98.3% [100 – 2.5 = 97.5, 100 – 1.7 = 98.3]
= $629.6852…
= $629.69

Theft and accident statistics

Approximately 56 000 motor vehicles are stolen in Australia each year, and the National
Motor Vehicle Theft Reduction Council (NMVTRC) says that a car is stolen in Australia
almost every 10 minutes. Each year, insurance companies charge $1 billion more for
insurance premiums due to car theft. Older cars are less secure than newer ones and attract
more thieves. Insurance costs more in areas that have a higher theft and/or accident rate.

EXAMPLE 3
The percentage probabilities for vehicle theft and recovery in five states and territories
each year are shown in the table.

State Chance of theft (%) Chance of recovery (%)

ACT 0.26 78
NT 0.63 75
Tas 0.26 92
Vic 0.24 67
Qld 0.19 70
Source: National Motor Vehicle Theft Reduction Council

a Which state or territory has the highest rate of vehicle theft?

b If there are 157 700 cars in Tasmania, how many are expected to be stolen each year?

ISBN 9780170413565 9. Owning a car 359

 c If 7489 vehicles were recovered in Victoria:
i how many were stolen in Victoria?
ii how many vehicles are there in Victoria?

Solution

a Northern Territory, since the chance of theft is greatest at 0.63%.

b Expected no. stolen cars in Tasmania = 0.26% × 157 700

= 0.0026 × 157 700
= 410.02
≈ 410

c i 67% of stolen vehicles are recovered.

67% = 7489 vehicles
7489
1% =
67
7489
100% = × 100
67
= 11 177.611…
≈ 11 178
11 178 vehicles were stolen in Victoria.

ii 11 178 vehicles is 0.24% of all vehicles in Victoria.

0.24% = 11 178 From part i
11178
1% =
0.24
11178
100% = × 100
0.24
= 4 657 500
There are 4 657 500 vehicles in Victoria.

360 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 DID YOU KNOW?

Car theft
• About 47% of vehicles stolen in Australia are stolen outside the home of the owner or
a friend of the owner, so park your car in a garage or in a secure parking area.
• Most vehicles are stolen in the late afternoon or evening, especially on Fridays,
Saturdays and Sundays.
• Most cars are stolen for short-term use (such as joyriding, transport) or for resale
(either as a whole vehicle or as stripped parts).
• Stolen motorcycles have the lowest rate of recovery with only 43% of thefts
recovered.
• About 30% of stolen vehicles are recovered within 10 km from where they were stolen.
Cheaper cars are more likely to be stolen, and account for about 40% of all
short-term vehicle thefts. Give a possible reason for this happening.

Exercise 9.01  Car insurance

1 Third Party Property insurance costs $38.17 per month. What is the cost per week?
Select A, B, C or D.
A $8.80 B $9.54 C $8.81 D $7.63

2 Mia paid her comprehensive car insurance at $150 per month. How much would she Example
save if she paid a lump sum of $1265? Select A, B, C or D. 1
A $685 B $1115 C $0 D $535

3 Jack bought a new van for $28 350. His CTP insurance is $626 per year and his
comprehensive insurance is $75.78 per month. What is the total cost of insurance per year?

4 Which insurance is the cheapest option? Select A, B or C.

A $985 per year paid in a lump sum
B $83.10 per month
C $38.25 per fortnight

ISBN 9780170413565 9. Owning a car 361

Example
5 The following table gives the Third Party Property insurance premiums for the
2 RIGHT4U insurance company.

Car make Driver Driver age Suburb where Place where car Third Party
gender vehicle is is usually kept Property
garaged premium
Suzuki male 19 Campbelltown on street $345
Honda female 56 Campbelltown carport $198
Mitsubishi male 42 Parramatta driveway $297
Holden female 23 Parramatta locked garage $243
Toyota male 83 Bondi on street $312
Nissan female 65 Bondi security $302
compound

What is the Third Party Property insurance premium, to the nearest cent, for:
a the female from Campbelltown who gets a 20% no claim discount?
b the driver who has the car in a locked garage and gets a 3.5% discount?
c 
the driver under 20 years of age who must pay an 11.6% surcharge as he lives in a
high theft area?
d 
the Toyota driver from Bondi who pays a 24% age levy but also gets a 4.2% loyalty
discount?

6 Fahaad paid $864.07 for a new comprehensive insurance policy which included a 15%
discount for buying online. What discount did Fahaad receive?

7 The base premium for the Green Slip on Emily’s car is $379.67 (GST excluded) and
the MCIS Levy (a tax to fund Medical Care and Injury Services) is 24.42% of the base
premium. Find the total cost of the Green Slip, including the MCIS levy and the
10% GST on the base premium.

8 Colin bought a motor scooter. His annual CTP Green Slip was $238 and his Third
Party Property insurance was $19.35 per month. He also agreed to pay the first 8.5% of
a claim if he had an accident that was his fault.
a What was his yearly insurance cost?
b He had an accident that was his fault and the damage bill to the other car was
$7320. How much did he contribute to the claim?
c In the same accident, his scooter suffered $1360 worth of damage. How much did
Colin pay towards this claim?

362 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 9 The NO FRILLS insurance company advertises a fixed insurance premium of $500 for
a car garaged in a metropolitan area and $550 otherwise. The premium is adjusted for
age and gender of the driver as shown in the table.

NO FRILLS insurance
Driver gender Driver age % adjustment
male <29 +14.6%
female <29 +13.5%
male 30–69 –4.6%
female 30–69 –6.3%
male >70 +17.4%
female >70 +9.8%

Calculate the insurance premium for each driver.

Driver gender Driver age Vehicle garaged

a male 24 metropolitan area
b female 76 country town
c male 32 on a farm
d female 47 metropolitan area
e male 28 metropolitan area
f female 18 country town

10 Refer to the table in Example 3 on page 359 to answer these questions. Example

a If there are 125 000 vehicles in the ACT, how many would you expect to be: 3
i stolen?
ii recovered?
b In Queensland, 2195 stolen vehicles were never recovered.
i How many were stolen?
ii How many vehicles are there in Queensland?

11 Ellie bought a small second-hand car for $12 350. Her Compulsory Third Party
insurance was $286 and she took out comprehensive insurance at $53.95 per month.
a What was her yearly insurance cost?
b She ran into the back of a car which had stopped at the traffic lights and did
$6320 damage to the car as well as $4280 to her own car. If Ellie had to pay an
excess of 8.5% of the repair costs, how much did the insurance company pay?
c Ellie’s comprehensive insurance premium will increase by 13.5% next year. How
much will she pay, to the nearest cent?

ISBN 9780170413565 9. Owning a car 363

 12 The six most stolen passenger vehicles in NSW one year are listed.

Car type No. of thefts % of thefts recovered

Holden Commodore 1990 317 86.8
Holden Commodore 1989 272 83.5
Holden Commodore 1991 264 83.3
Ford Falcon 1989 214 54.7
Ford Falcon 1990 189 52.9
Toyota Camry 1989 182 83.0
Source: National Motor Vehicle Theft Reduction Council

a How many Holden Commodores were stolen?

b How many Ford Falcons were recovered?
c How many Toyota Camrys were not recovered?
d Why do think older cars are more likely to be stolen?

13 The graph below shows crash and casualty statistics for NSW based on gender.

Driver 6955 8122

© State of New South Wales (Transport for NSW)

Passenger 2228 1492

Motorcyclist 2020

Pedestrian 663 777 Male

Female

Pedal cyclist 690 Unknown

How would this data affect the price of car insurance policies?

WS
9.02  Stamp duty
Stamp duty is a tax paid to the Office of State Revenue when you buy a new or used vehicle.
Homework
Stamp duty
It is calculated on the market value of the vehicle or the price actually paid, whichever is the
greater. Stamp duty is usually included in the ‘on-road’ price of a new vehicle.
In NSW, the rates for stamp duty on a motor vehicle are:

Vehicle value Rate

$0–$44 999 $3 for every $100 (or part of $100)
$45 000 and over $1350 plus $5 for every $100 (or part of $100) over $45 000

The price of a motor vehicle needs to be rounded up to the nearest $100 when calculating
stamp duty.

364 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 EXAMPLE 4
Lexie purchased a vehicle for $56 240. The stamp duty is $3 for every $100 (or part of
$100) of the purchase price up to $44 999, and $1350 plus $5 for every $100 (or part
of $100) for $45 000 and over.
a How much stamp duty did Lexie pay?
b Complete the table below.

Vehicle 0 10 000 20 000 30 000 40 000 45 000 50 000 60 000 70 000 80 000
value ($)
Stamp 300 1200 2100 3100
duty ($)

c Use the completed table of values to construct a piecewise linear graph.

d Use the graph to find, to the nearest $100:

i the stamp duty on a $64 000 vehicle

ii the value of a vehicle if the stamp duty is $750.

Solution

a Purchase price = $56 240

≈ $56 300 For stamp duty, round purchase price
up to the nearest $100.

Stamp duty = $1350 + 5% × ($56 300 − $45 000)

= $1915
Lexie paid $1915 stamp duty.

b Vehicle
0 10 000 20 000 30 000 40 000 45 000 50 000 60 000 70 000 80 000
value ($)
Stamp
0 300 600 900 1200 1350 1600 2100 2600 3100
duty ($)

ISBN 9780170413565 9. Owning a car 365

 c A piecewise linear graph is made up of line segments with different gradients.

Stamp duty

4000

3500

3000
Stamp duty ($)

2500
i
2000

1500

1000
ii
500

0
10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000
Vehicle value ($)

d i $2300 ii  $25 000

Exercise 9.02  Stamp duty

1 Stamp duty is $3 for every $100 (or part of $100) of the purchase price of small car.
What is the stamp duty on a small Hyundai with a purchase price of $22 120? Select
A, B, C or D.
A $660 B $664 C $662 D $666

2 Stamp duty on a vehicle is $3 for every $100 (or part of $100) for the first $45 000 and
$5 for every $100 (or part of $100) on the remainder. What is the stamp duty on a
$55 000 ute? Select A, B, C or D.
A $1350 B $1650 C $1850 D $2750

Example
3 Vehicle stamp duty is 3% of the purchase price up to $30 000 plus 11% for every dollar
4 between $30 000 and $40 000 plus 4% for every dollar over $40 000.
a Find the stamp duty on a vehicle costing:
i $30 000 ii $45 000 iii $60 000
b Construct a piecewise linear graph showing the stamp duty for cars from
$0 to $80 000. [Use a scale of 1 cm = $10 000 on the horizontal axis and
1 cm = $500 on the vertical axis.]
c Use your graph to find, to the nearest $100:
i the stamp duty on a $75 000 car
ii the cost of a car if stamp duty is $3000.

366 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 4 If stamp duty on a new vehicle is 2.75% of the purchase price up to $20 000 plus 5.75%
for every dollar between $20 000 and $45 000 plus 6.5% for every dollar over $45 000,
how much stamp duty will you pay on a car worth:
a $20 000? b $45 000? c $78 500?

5 Stamp duty charges on vehicles in one state of Australia are shown in the graph.
Stamp duty
3000

2500
Stamp duty ($)

2000

1500

1000

500

0
0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

Vehicle value ($)

a To the nearest $100, find the stamp duty on a vehicle worth:

i $33 000 ii $66 000 iii $85 000.
b To the nearest $1000, find the value of a vehicle if the stamp duty is:
i $2300 ii $1700 iii $750.

6 In one state of Australia, there is no stamp duty on a car valued at less than $6000. The
stamp duty on a car valued at $6000 or more attracts a stamp duty charge of $10 for
every $200 or part thereof of its value. To the nearest dollar, what is the stamp duty on a
car valued at:
a $6350? b $68 980? c $146 000?

7 If stamp duty on a vehicle is $60 for the first $3000 of the purchase price plus 4%
for every dollar over $3000, calculate the stamp duty payable on a vehicle with
purchase price of:
a $8000 b $12 500 c $69 750.

8 Stamp duty in Victoria is based on the market value of the vehicle, regardless of the price
paid. The rates are:
•    2.5% of the market value up to $57 009
•    5% of the market value if it is over $57 009.

Calculate the stamp duty on a vehicle with a market value of:

a $57 100 b $22 500 c $132 400.

ISBN 9780170413565 9. Owning a car 367

 9 Stamp duty on wrecked cars is calculated using this table.

Car value Stamp duty

$1000 or less 1% with a minimum of $5
$1001 to $2 000 $10 + 2% on the amount over $1000
$2001 to $3 000 $30 + 3% on the amount over $2000
$3001 or more $60 + 4% on the amount over $3000

iStock.com/mgkaya
Find the stamp duty, to the nearest dollar, on a wrecked car worth:
a $980 b $2850 c $3200.

10 Stamp duty charges based on the value of a car are listed in this table.

Car value Stamp duty

$600 or less $18
$600 to $35 000 3%
$35 000 to $40 000 $1050 + 11% for the amount over $35 000
$40 001 or over 4%

Calculate the stamp duty charges, to the nearest cent, for a car valued at:
a $585 b $34 800 c $105 500
d $890 e $38 750.

368 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 TECHNOLOGY
Stamp duty online calculator
Search for ‘stamp duty calculator’ on the
State NSW
Internet that calculates the duty for
different states of Australia. Purchase Price 40000
This calculator shows that the stamp duty NSW Stamp Duty: $1,200.00
in NSW for a vehicle with a purchase price
of $40 000 is $1200.
1 For a 6-cylinder car with a purchase price of $40 000, find:
a which state has the highest stamp duty
b which state has the lowest fee to transfer the car registration to a new owner
c the total payable in Victoria
d the range of stamp duties
e the average stamp duty for the six states and the two territories.
2 Find the current stamp duty payable on:
a a car worth $22 000 in NSW
b a van with a value of $32 500 in Tasmania
c a hybrid car in Queensland valued at $31 480
d a 4WD in Western Australia worth $102 450.

9.03  On-road costs

You have your licence, you have saved money from your part-time job and now it is time to
buy your first car. So what exactly are the costs of purchasing a car?
• Purchase price
• Stamp duty
• Vehicle registration: yearly process of paying and obtaining permission for using a
vehicle on public roads
• CTP (Compulsory Third Party) insurance – a ‘green slip’
• Third Party Property or comprehensive insurance (optional but advisable)
• Loan interest and fees

ISBN 9780170413565 9. Owning a car 369

 The cost of registration and CTP insurance is often included in the purchase price of a car,
and stamp duty if the car is new. These are called on-road costs.

iStock.com/sturti
EXAMPLE 5
Kayne purchased a van for $40 850 to use in his landscaping business. He set up a table of
costs associated with his purchase.
Purchase price $40 850
GST 10% of purchase price
Stamp duty $3 for every $100 (or part of $100) of GST price
Registration (per year) $764
CTP insurance (Green Slip) $412
Comprehensive insurance (per year) $963

What was the on-road cost to purchase this vehicle?

Solution

Cost
GST price 110% × $40 850 $44 935
3% × $45 000 (rounding $44 935 up
Stamp duty on GST price $1350
to the nearest $100)

Total cost = $44 935 + $1350 + $764 + $412 + $963

= $48 424

370 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

Exercise 9.03  On-road costs
1 Angela paid cash for a second-hand motor scooter with these on-road costs.

Purchase price (including GST) $15 000

Stamp duty 2% of purchase price
Transfer of registration $200
CTP insurance (Green Slip) $150
Third party insurance $240

What was the total cost? Select the correct answer A, B, C or D.

A $15 590 B $20 090 C $15 620 D $15 890

2 Naazmi bought a new 4WD with on-road costs as shown. Calculate the total amount
paid. Select A, B, C or D.

Purchase price $45 000

GST 10%
Stamp duty 5% of GST price
Registration $860
Green Slip $420

A $50 780 B $53 255 C $48 530 D $68 780

3 Libby bought a sports car for $59 600 plus costs as shown. Example

5
Purchase price $59 600
GST 10% of purchase price
Stamp duty on GST price $1350 plus $5 for every $100 (or part of $100) over $45 000
Registration $615
CTP insurance (Green Slip) $419
Comprehensive insurance $1625

What was the total cost of her sports car?

4 Charles bought his second-hand station wagon with the following upfront costs.

Purchase price $31 280

Stamp duty 1.5% of purchase price
Transfer of registration $32
CTP Insurance (Green Slip) $427
Third Party Property insurance $317

How much did he pay for his vehicle?

ISBN 9780170413565 9. Owning a car 371

 5 A car dealer was offering purchasers a 15% discount on the marked price of all vehicles.
The costs of GST, stamp duty, registration and CTP insurance are then added to the
discounted price to give the total cost.

Type of car Registration CTP Insurance Third Party Comprehensive

(compulsory) Property insurance
insurance (optional)
(optional)
Holden $325 $614 $250 $1268
Ford $318 $598 $264 $1095
Toyota $336 $437 $206 $999
Nissan $384 $503 $295 $1134
Honda $396 $602 $301 $1003
Subaru $401 $599 $278 $1236
GST: 10% of discounted price
Stamp duty: $3 for every $100 (or part of $100) up to $45 000 or
$1350 plus $5 for every $100 (or part of $100) over $45 000
Dealer special: No stamp duty on GST prices of $6500 or less.

Use the table to find the total cost of a:

a Holden with a marked price of $31 468 and Third Party Property insurance
b Ford with a marked price of $6500 and no optional insurance
c Toyota with a marked price of $65 489 and comprehensive insurance
d Nissan with a marked price of $27 650 and no optional insurance
e Honda with a marked price of $18 639 and comprehensive insurance
f Subaru with a marked price of $58 790 and Third Party Property insurance.

6 Sascha bought a 4WD minivan with the following upfront costs.

Purchase price $43 860

Stamp duty 1.5% for first $25 000 plus 3% for each $ over $25 000
Registration $726
CTP Insurance (Green Slip) $854
Comprehensive insurance $1352

What was the total cost of his van?

372 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 7 The extra costs involved in a car purchase at Wally’s Wheels are listed in the table.

GST 10% of purchase price

Stamp duty (on GST price) 3% of the price inclusive of GST up to $45 000
5% for every dollar over $45 000.
Registration $743 + transfer fee of $50
CTP Insurance (Green Slip) $837
Third Party Property insurance $P + 5% extra for drivers 25 years and under
Comprehensive insurance $C + 10% extra for drivers under 30 years

Note: $P and $C are basic amounts depending only on vehicle type. Add age amounts if
required.

Find the total costs for purchasing each of the following vehicles.
a $56 780 sports car bought by 29-year-old Josh with comprehensive basic $1034
b $36 204 sedan bought by 40-year-old Natalie with Third Party Property basic $328
c 4WD bought by 26-year-old Heath for $38 759 with Third Party Property basic
$407
d 
Truck bought by 50-year-old ‘Highway Harry’ for $128 000 with comprehensive
basic $6945
e $15 320 car bought by 24-year-old Jasmine with Third Party Property basic $269
f $21 648 van bought by 29-year-old ‘Bill the Baker’ with comprehensive basic $747

TECHNOLOGY
Purchasing your first car
The Office of Fair Trading provides information on purchasing items, including the
booklet The Car buyer’s guide. Use the booklet or the Fair Trading website to answer
these questions.
1 What things should be on your vehicle checklist before you buy a car?
2 What are the seven steps to follow when you buy a car privately?
3 What are RMS and PPSR and how can they help you to buy a car?
4 Why should you avoid buying a car advertised on the roadside?
5 What is meant by ‘rebirthing’? How does this affect insurance premiums?
Investigate other websites that may assist you in the purchase of a vehicle.

ISBN 9780170413565 9. Owning a car 373

 DID YOU KNOW?

Best-selling car brands

The table shows the ten best-selling car brands in Australia in 2011 and 2016.

2011 2016
1 Mazda 3 Toyota HiLux
2 Holden Commodore Toyota Corolla
3 Holden Cruze Hyundai i30
4 Toyota Corolla Ford Ranger
5 Toyota Hilux Mazda 3
6 Hyundai i30 Toyota Camry
7 Mazda 2 Holden Commodore
8 Ford Falcon Mazda CX-5
9 Ford Territory Mitsubishi Triton
10 Toyota Camry Hyundai Tucson
There have been some changes over the 5 years, such as the meteoric rise of the Mazda
brand and the Toyota HiLux.
1 What other notable changes have occurred from 2011 to 2016?
2 Find out what the list looks like this year.

9.04  Running costs

The running costs of a car include fuel, servicing, repairs, tyres, renewal of car registration
and insurance premiums, and depreciation. Motorway tolls, parking fees and fines for traffic
infringements also need to be considered.

EXAMPLE 6

Rabiba owns a Holden Cruze and drives about 15 000 km per year. Her car was serviced
twice during the year, each service capped at $250. She also needed two new tyres at
$148 per tyre. Rabiba had to pay $385 for car registration, $585.21 for the green slip and
$691.88 for comprehensive insurance. Her weekly fuel bill is $35. Parking fees and tolls
amounted to $38 per week.
a How much did Rabiba spend on her car during the year (to the nearest dollar)?
b What was the weekly cost of the car?

374 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 Solution

a Total cost = $250 × 2 + $148 × 2 + $385 + $585.21 + $691.88 + $35 × 52 +$38 × 52

= $6254.09
≈ $6254
$6254
b Weekly cost =
52
= $120.269…
≈ $120.27

iStock.com/Minerva Studio

Exercise 9.04  Running costs

1 The average weekly cost of running a Mazda 3 5-door hatchback has been estimated to Example
be $202.67. What is the yearly cost of running this car? 6
2 The weekly fuel bill of a car is $37.69 based on the car travelling 15 000 km per year.
If the average fuel price is $1.28, find:
a the amount of fuel (to the nearest litre) used per week
b the annual fuel cost.

ISBN 9780170413565 9. Owning a car 375

 3 Jackson estimates that he will travel approximately 500 km per week. He estimates the
fuel consumption of 11 km per litre and a fuel price of $1.38 per litre. Car registration and
Compulsory Third Party insurance will cost $785 and the comprehensive insurance on his
car will be $725. Jackson has calculated that $1100 should cover servicing and maintenance
of the car and he has paid $180 for membership to the NRMA road service. He pays $50
per week on motorway tolls and parking fees amount to $500 for the year.
a Calculate Jackson’s fuel bill for the year.
b How much will Jackson pay for the annual running costs of his car?
c How much will Jackson need to budget per fortnight to cover the cost of running
his car?

4 The following table shows the average vehicle running costs for NSW, Queensland and
Victoria in 2014.

State NSW VIC QLD

Servicing and maintenance $953 $1010 $1096
Registration and insurance $1474 $1232 $1096
Parking and tolls $298 $311 $181
Fines $53 $106 $70
Petrol $2834 $2979 $3494
Copyright © 2017 drive.com.au

a Calculate the average weekly running costs for vehicles for each state.
b What is the difference between the annual cost in NSW and Queensland?
Give a possible reason for this difference.

5 The Toyota Hilux was the highest-selling passenger vehicle in 2016. The average total
weekly running cost is $235.87. Find the annual running cost of a Toyota Hilux.

6 Sarita bought a new car for $21 000. She is told that the running cost of the car will
be 49.29 cents per km. Sarita travels 20 000 km per year. What is her average weekly
running cost for the car?

7 Ben’s annual fuel cost is $3744. His registration, CTP insurance and comprehensive
car insurance amount to $1432. His car has had two services costing $267 and $321.
At the last service, Ben was informed he needed four new tyres, which cost $212 each.
The NRMA fee for gold membership was $180, and tolls and parking fees amounted to
$890 for the year. Parking fines added $320 to his costs.
a What is the weekly running cost of Ben’s car?
b If the depreciation on Ben’s car amounted to $6000 and is also considered as a
running cost, calculate the annual and weekly running cost of the car.

8 The list price for a car is $32 990 and the on-road price is $36 528. The car depreciates
by $74.86 per week. What is the value of the car after one year?

376 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

9.05  Fuel consumption and prices WS

The types of fuel used to power vehicles include petrol, diesel, liquefied petroleum gas Homework
How much
(LPG), ethanol and electricity. Petrol is the most common fuel and most cars use unleaded petrol?

petrol (ULP).
WS
Fuel consumption is the rate at which a car uses fuel and is usually measured in litres per
100 km (L/100 km). For example, a large car may use 12.3 L of fuel to travel 100 km whereas Homework
Graph of
petrol prices
a small car may use only 5.8 L. The small car has a better fuel consumption and is more
fuel-efficient. The table shows the fuel consumption for some of Australia’s best-selling cars.

Vehicle Fuel consumption (L/100 km)

Average City Highway
Ford Focus 6.2 8.7 4.8
Ford Ranger (diesel) 6.6 7.8 5.8
Holden Commodore 9 12.5 7
Holden Cruze 7 9.5 5.5
Hyundai i30 7.3 10.3 5.5
Mazda 2 5.4 7.2 4.4
Mazda 3 5.8 7.6 4.8
Mitsubishi Lancer 10.1 13.9 8
Nissan Navara 9.7 13 7.7
Nissan X-trail 8.1 11 6.4
Toyota Camry Hybrid 5.2 5.7 4.9
Toyota Corolla 4.1 3.9 4.1
Toyota Hilux 11.1 15.5 9.4
Toyota Hilux (diesel) 9 10.9 7.8
Toyota Prado 11.6 15.5 9.4
Toyota Yaris 5.8 7.1 5.1
Volkswagen Golf 4.9 5.8 4.5
www.greenvehicleguide.gov.au © Copyright 2017, Commonwealth of Australia

The fuel consumption of a vehicle depends on several factors. You use more fuel for:
• stop–start driving in traffic (urban cycle)
• driving on unsealed roads
• using a badly tuned engine
• using a driving style involving hard acceleration and/or braking
• using under-inflated tyres
• towing a trailer or caravan
• using the air conditioner.

ISBN 9780170413565 9. Owning a car 377

 EXAMPLE 7
Fuel
consumption A Mini Cooper has an advertised fuel consumption of 5.8 L/100 km.
a How much fuel, to two decimal places, does it use for a trip of 1530 km?
b If fuel is $2.04 per litre, what is the fuel cost, to the nearest dollar, for this trip?
c How far, to the nearest kilometre, can the Mini travel on a full tank of 35 L?
d If the Mini used 25 L to go 400 km on an outback trip, how far could it go on 42 L at
the same rate?

Solution

a Fuel for 100 km = 5.8 L

5.8
Fuel for 1 km = L       Using the unitary method
100
5.8
Fuel for 1530 km = 1530 × L
100
= 88.74 L

b Fuel cost = 88.74 × $2.04

= $181.0296
≈ $181

c 5.8 L is used for 100 km

100
35 L is used for × 35 km = 603.44 827… km
5.8
≈ 603 km
The Mini can travel 603 km (to the nearest km) on a full tank of fuel.

d 25 L takes the car 400 km

400
1 L takes the car km
25
400
42 L takes the car × 42 km = 672 km
25

The Mini can travel 672 km on 42 L.

378 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 EXAMPLE 8

This table shows the average fuel prices (in cents/litre) in state capitals over a 12-month
period.

  Regular unleaded petrol Diesel LPG

Brisbane 149.2 131.3 72.3
Sydney 132.6 127.8 75.9
Melbourne 144.5 131.0 70.1
Adelaide 127.9 128.9 76.4
Perth 141.2 134.1 73.2
Hobart 151.9 135.6 87.0

a Which capital has the highest fuel price for:

i petrol? ii diesel? iii LPG?

b What is the average price, in cents, for petrol in the capitals?
c What is the range of LPG prices?
d If Elise filled up her 60 L tank with petrol in Sydney at the price shown:
i how much did she pay?
ii how far could she travel on this tank if her car used 8 L/100 km?

Solution

a i Hobart    ii Hobart    iii Hobart

149.2 + 132.6 + 144.5 + 127.9 + 141.2 + 151.9

b Average =   = 141.2 cents
6

c Range = 87.0 – 70.1 = 16.9

d i Cost of fuel = 60 × 132.6

= 7956 cents
= $79.56
ii 8 L takes her 100 km

100
60 L takes her × 60 km = 750 km
8

ISBN 9780170413565 9. Owning a car 379

 Exercise 9.05  Fuel consumption and prices
1 A motorcycle has a fuel consumption of 3.2 L/100 km. How far can it travel on 1 L of
petrol? Select A, B, C or D.
A 32 km B 16.1 km C 31.25 km D 3.2 km

2 A car travels 160 km on 14 L of petrol. What is its fuel consumption in L/100 km?
Select A, B, C or D.
A 11.4 B 8.7 C 22.4 D 8.8

Example
3 A Mazda has a fuel consumption of 11.5 L/100 km.
7 a What is the fuel consumption in L/km?
b How much fuel, to the nearest litre, does it use to travel 980 km?
c How far could it travel on a 55 L tank of fuel? Answer to the nearest kilometre.
d If the Mazda used 48 L to go 695 km, how far (to the nearest km) could it go on
102 L at the same rate?

4 A Ford Mondeo has a fuel consumption of 5.5 L/100 km. How much fuel, in litres
correct to two decimal places, does it use to travel:
a 10 km? b 2347 km?

5 If a car uses 8 L of fuel to travel 100 km, how much will it use to travel:
a 1 km? b 150 km?
Shutterstock.com/Syda Productions

6 Refer to the table of fuel consumption of some of Australia’s best-selling cars on page 377.
a Which car has the best fuel consumption?
b How far (to the nearest kilometre) can this car travel on a 45 L tank of fuel?
c How much petrol does the Mazda 2 use for a 2500 km trip at the rate shown?
d What is the cost of a 1348 km trip in the Toyota Hilux if:
i the price of petrol is 174.6 c/L?
ii the price of diesel is 142.3 c/L?

380 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

Use the table in Example 8 on page 379 to answer Questions 7 and 8.

7 a What is the average price, in dollars and cents, for diesel? Example

b What is the range of petrol prices? 8

c Tyson filled up his 160 L Hummer fuel tank with petrol in Melbourne at the price shown.
i How much did he pay?
ii If his fuel consumption is 13.2 L/100 km, how many whole kilometres would
he go before running out of petrol?

8 a What is the average price paid for diesel in the east coast state capitals (Sydney,
Melbourne and Brisbane)?
b What is the range of diesel prices in the east coast state capitals?
c What does it cost Angela to fill her 50 L diesel Golf fuel tank at the price shown in
Hobart?
d A Volkswagen ‘beetle’ car travelled 440 km on a 40 L tank of fuel. What was the
fuel consumption in L/100 km?

9 The table shows the price of petrol (in c/L) in one week.
Petrol Mon Tues Wed Thurs Fri Sat Sun
Brisbane 143.4 140.4 139.2 150.7 150.6 148.3 146.2
Sydney 149.7 147.6 146.6 159.5 158.0 154.7 151.8
Melbourne 151.1 149.0 148.0 158.9 157.4 155.2 153.0
Adelaide 150.0 147.8 148.0 160.9 158.5 155.9 152.7
Perth 146.7 146.6 146.3 145.9 146.3 146.5 146.6
Hobart 154.1 154.1 154.0 154.0 154.0 154.0 153.9

a What was the average petrol price in Brisbane this week, correct to two decimal
places?
b What was the average petrol price on Monday for the cities?
c What was the range of prices on Saturday for the cities?
d What was the range of prices for the week in Perth?
e Which city had the lowest average weekly petrol price?
f On which day was the average petrol price was greatest?
g Which city offered the greatest range of prices over the week?
h Which day showed the smallest range in prices for the cities?

10 Lachlan, Brodie and Mitchell each did a 3-day car trip and recorded their fuel usage.
Brodie Distance travelled (km) Fuel used (L)
Friday 497 47
Saturday 364 43
Sunday 579 56

ISBN 9780170413565 9. Owning a car 381

 Lachlan Distance travelled (km) Fuel used (L)
Friday 543 68
Saturday 297 43
Sunday 410 56

Mitchell Distance travelled (km) Fuel used (L)

Friday 624 56
Saturday 208 39
Sunday 524 45

Whose car had the best average fuel consumption?

11 Copy and complete the table.

Distance Fuel used (L) Fuel consumption
travelled (km) (L/100 km)
863 62
43 11.2
1304 8.4
86 9.7
2356 12.9
1730 167

TECHNOLOGY
Calculating fuel consumption and costs
1 Search for an online fuel consumption calculator similar to this one.

Fuel spent litres (L): 60

725
Kilometres (km):

Metric units (L, km)

Select units type:

2 digits after decimal point

Rounding options:

SUBMIT

Calculate the fuel consumption in L/100 km for:

a a Jeep that travels 3200 km and uses 380 L fuel
b a Volkswagen that travels 1850 km and uses 160 L fuel
c a Smart car that travels 790 km and uses 60 L fuel.

382 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 2 Search for an online calculator that finds annual fuel costs, such as this one:

Calculate your annual fuel costs

Fuel consumption Annual distance Annual fuel

Fuel price ($/litre) (L/100 km) travelled (km) cost ($)

CAR 1

1.95 8.28 15000

CALCULATE

a Calculate the annual fuel costs for Brad who travels 550 km each week when fuel
costs $1.65 per litre. His car can travel 600 km on a 50-litre tank of fuel.
b Survey five friends or family members to see how far each travels per year and the
fuel consumption of their cars in L/100 km. Calculate their annual fuel costs at the
current petrol price.

DID YOU KNOW?

Ten ways of saving fuel

 1 Drive at a moderate speed: not too slow, not too fast. Driving at 110 km/h and
beyond uses much more fuel than driving at 80–100 km/h.
 2 Service your car regularly and check the tyre pressure.
 3 Avoid driving in stop-start traffic during peak times and on busy roads.
 4 Avoid excessive braking. Allow the car to come to a natural stop.
 5 If waiting in traffic for a long time, switch off the engine.
 6 Close the windows when driving to reduce drag.
 7 Switch off the air conditioner.
 8 Reduce the load on your car by removing heavy objects from the boot and removing
roof racks if they are not being used.
 9 Plan to do all your small jobs in one trip rather than lots of short trips.
10 Use public transport, walk or ride a bike.
Choose two of the ways above and explain how or why they save fuel.

ISBN 9780170413565 9. Owning a car 383

 9.06  Choosing the best car
Choosing a car to buy will depend on your personal tastes and needs, and most importantly,
on your budget. Initial costs that need to be considered are registration, CTP insurance, car
insurance, maintenance, repairs, and cost of fuel. If a loan is required to buy the car, then the
fortnightly/monthly payments also need to be included in your budget.
Other essential factors that may influence your choice of car are:
• the size of the motor (for example, 1.8 L, 2.0 L, 3.6 L)
• the type of fuel the car uses (petrol, diesel, LPG, hybrids)
• fuel consumption
• warranty periods for a car purchased from a dealership
• security and safety features
• whether to buy a new car or a used car.

EXAMPLE 9
Jasmine decides to buy a new car and apart from the purchase price and on-road costs, she
is allowing $6500 per year for running costs. Jasmine borrows $25 000 over 3 years to pay
for the car. Her fortnightly repayments are $355.77.
How much will Jasmine have to budget for the car each week (to the nearest dollar)?

Solution
Running costs/year = $6500
Loan repayments/year = $355.77 × 26 = $9250.02
Total = $6500 + $9250.02
= $15 750.02
$15 750.02
Weekly amount =
52
= $302.89
≈ $303
Jasmine will have to budget $303 per week.

EXAMPLE 10

Samin bought a car for $39 044, which included on-road costs. Samin paid 40% of the
total of his car in cash and borrowed the rest at 8.5% p.a. flat interest over 4 years.
a How much did Samin borrow, rounded up to the nearest dollar?
b How much will he have to budget per week to cover the cost of repayments?

384 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 Solution
a Amount borrowed = 60% × $39 044         100% – 40% = 60%
= $23 426.40
≈ $23 427
b Interest = $23 427 × 0.085 × 4
= $7965.18
Total to repay = $23 427 + $7965.18
= $31 392.18
$31 392.18
Weekly amount = 52 × 4 = 208
              
208
= $150.923…
≈ $150.93

Exercise 9.06  Choosing the best car

1 The annual running costs for Nicole’s car include $780 for registration and Green Slip, Example
$589 for comprehensive insurance, $1800 for fuel, $1100 for maintenance, servicing and 9
tyres. She also has to pay $610 per month for the car loan. Calculate Nicole’s weekly
budget for the car.

2 Dylan is purchasing a new car. He has selected two cars, which are similar, but one uses
diesel and the other uses petrol.

Car 1: Diesel – cost $44 430,

average weekly running cost
$235.87

Car 2: Unleaded petrol – cost Shutterstock.com/Evannovostro

$42 700, average weekly running
cost $241.58

Calculate the cost of each car over

5 years to determine which car is the
better option.

3 At a petrol station, the price of regular unleaded petrol is 134.9 c/L and the price of
LPG is 71.5 c/L. Two cars, one petrol and the other LPG, both fill their tanks with 65 L
of fuel. What is the difference between their fuel bills?

4 Mariah paid $32 700 for a second-hand station wagon. She borrowed 75% of the total Example
cost at 9.4% p.a. flat interest over 3 years. 10
a How much did she borrow, rounded up to the nearest dollar?
b How much will she need to budget per week to cover the cost of loan repayments?

ISBN 9780170413565 9. Owning a car 385

 5 Daniel wants to purchase a new car costing $29 950. He needs finance to pay for the car
and has two options:
A: reducible loan at 8% p.a. interest, monthly payments of $731.17 for 4 years
B: reducible loan at 9.5% p.a. interest, fortnightly payments of $441.98 for 3 years.

Which is the better option? Justify your answer.

6 Many car dealerships offer a 5-year warranty or 100 000 km. What does this mean?

7 Copy this table to compare the cost of buying two different cars.

Car 1 Car 2
Make
Model
Year
Cost of car $ $
Cash price of car $ $
Less trade-in or deposit $ $
Stamp duty and registration transfer $ $
Comprehensive and third party insurance $ $
Fees and extras $ $
$ $
$ $
Other costs $ $
Extended warranty $ $
Total amount needed for car $ $
© State of New South Wales (NSW Fair Trading). For current information go to
fairtrading.nsw.gov.au

Complete this table for two cars, using the Internet to obtain information such as price,
stamp duty, insurance, cost of registration and so on, to calculate the total amount
needed to buy a car.
Shutterstock.com/vectorfusionart

386 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 SAMPLE HSC PROBLEM

Nitara is buying a used car that has a sale price of $18 700. She will have to pay a transfer
of registration fee of $32 and stamp duty which is calculated at $3 for every $100 or part
thereof, of the sale price.
a Calculate the stamp duty Nitara has to pay.
b Nitara borrows the total amount of the cost of the car including the transfer of
registration and stamp duty. She pays $540 per month over 4 years to repay the loan.
Calculate:
i the total amount Nitara borrows
ii the total amount Nitara pays for the car
iii how much Nitara needs to allow for the loan repayments if she works on a
weekly budget.

Study tip
Your study routine
• Your study routine will be more effective if you maintain a healthy lifestyle: eat, sleep,
rest, exercise, socialise and generally be happy!
• Try to study at the same time and place each day.
• When studying, alternate between easy tasks and hard tasks.
• Stop and reflect on what you have achieved before moving on.
• Use your time wisely and take regular breaks.
• Ask yourself: ‘Am I really studying effectively or am I wasting time? Do I feel a sense of
achievement?’
• Take a 1-minute break after completing each study or homework task.
• Take a longer break after working for more than 45 minutes continuously.
• Reward yourself when you feel you have completed a significant amount of work:
watch a bit of TV, have a snack, play some sport or a game, or go for a walk.

ISBN 9780170413565 9. Owning a car 387

 9. CHAPTER SUMMARY

This chapter, Owning a car, looked at the costs of owning a car. These costs include on-road
costs such as the purchase price, insurance, registration and stamp duty. It also looked at the
running costs of owning a vehicle such as fuel consumption, registration and insurance of the
car, fuel consumption, service, maintenance and repairs.
Make a summary of this topic. Use the outline at the start of this chapter as a guide.
An incomplete mind map is shown below. Use your own words, symbols, diagrams, boxes and
reminders. Gain a ‘whole picture’ view of the topic and identify any weak areas.

On-road Running
costs costs

Stamp OWNING Fuel consumption

duty A CAR and prices

Car Choosing
insurance a car

388 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 9. TEST YOURSELF

1 This table gives two examples of Third Party Property insurance premiums. Exercise

9.01
Car make Driver Driver Town where Place where Third Party
gender age vehicle is car is usually Property
garaged kept premium
Mitsubishi male 42 Parramatta driveway $297
Nissan female 65 Bondi security $302
compound

What is the insurance premium for:

a the Nissan driver who gets a 5% discount for secure garaging?
b the male driver who pays an 8% levy for non-secure garaging in a high-theft area?

2 Ben had Third Party Property insurance, paid by a direct debit of $15.80 per fortnight. Exercise

9.02
a How much would he save if he paid a yearly amount of $402.50 upfront?
b He hit a tree and wrote off his car, worth $15 600. What is his insurance cover?

3 Use the table below to find the stamp duty on cars valued at: Exercise

9.03
a $23 600 b $57 000 c $4800 d $84 600.

Car value Stamp duty rate

up to $5000 1.5%
plus each $ between $5001 and $35 000 2.5%
plus each $ over $35 000 5.0%

4 In one state of Australia, stamp duty is based on whichever is higher – the market value Exercise

or the purchase price. 9.03

Value Stamp duty

$54 500 or less $5 for every $200 or part thereof
over $54 500 $10 for every $200 or part thereof

Use this table to find the stamp duty on vehicles with:

a purchase price $23 600 and market value $24 500
b purchase price $36 750 and market value $32 400
c market value $69 300 and purchase price $71 260
d market value $59 800 and purchase price $58 000.

ISBN 9780170413565 9. Owning a car 389

 5 The rates for stamp duty in NSW are shown in this table.

Vehicle value Rate

$0–$44 999 $3 for every $100 (or part of $100)
$45 000 and over $1350 plus $5 for every $100 (or part of $100) over $45 000

Calculate the stamp duty on a car valued at:

a $21 370 b $44 020 c $58 700 d $89 220.

Exercise 6 Raphael bought a new car with the following upfront costs..
9.03
Purchase price $24 999
Stamp duty 1.5% up to $5000
plus 2.5% for each dollar between $5000 and $20 000
plus 4.5% for each dollar over $20 000
Registration $328
CTP Green Slip $503
Comprehensive insurance $1204

What was the total upfront cost of his car?

Exercise 7 Nadia spends $42 on fuel per week and her comprehensive car insurance is $70.81 per
9.04 month. She also pays $812.68 for car registration and CTP insurance, and services cost
her $590 annually. Other repairs and replacement of tyres cost $450. Nadia uses the
motorways 5 days a week at an average cost of $62 per week.

Find the total running cost of Nadia’s car for:

a the year b a week.

Exercise 8 The fuel consumption of a four-wheel drive vehicle was measured under various
9.05 conditions.
Conditions Fuel consumption Trip distance Fuel used
(L/100 km) (km) (L)
City driving non-peak 14.5 35
hour
City driving in peak hour 12.7 26
Highways 10.8 460
Outback dirt roads 8.4 2635
Towing a caravan 7.3 9870

a What is the average fuel consumption (in L/100 km) for these five conditions?
b Complete the table by calculating, correct to one decimal place, the fuel used
for the trip distances for each condition.
c What are three ways to improve fuel consumption?

390 NCM 11.  Mathematics Standard (Pathway 2) ISBN 9780170413565

 9 The table shows the fuel consumption for some vehicles. Exercise

9.05
Car type Fuel consumption
(L/100 km)
Ford Falcon 11.7
Holden Commodore 11.3
Honda Jazz 5.7
Hyundai Sonata SLX 8.0
Lexus GS300 9.8
Mini Cooper 5.8
Mitsubishi Colt 5.6
Nissan Patrol 17.2
Peugeot 308 6.7
Toyota Aurion 9.9

a What is the range of fuel consumptions for these ten cars?

b What is the average fuel consumption for these ten cars?
c What is the rate in L/km for the:
i Peugeot 308? ii Honda Jazz? iii Holden Commodore?
d How many kilometres can the Ford Falcon travel on a 70 L tank of fuel?
e How much fuel does the Lexus use for a trip of 2500 km?

10 Unleaded petrol at a service station is 158.9 cents per litre. Diesel fuel is priced at Exercise

128.6 cents per litre. 9.06

What is the difference in cost of filling up tanks that hold 70 L?

Qz

Chapter quiz

ISBN 9780170413565 9. Owning a car 391