
A. £3,300
B. £12,400
C. £16,500
D. £39,600
E. £48,000
Answer: E
Explanation:
Step 1 – total the servicing costs 1,050 + 1,100 + 950 + 1,025 + 875 = £5,000 per week Step 2 – calculate the monthly cost 5,000 x 4 = £20,000 per month Step 3 – calculate the average monthly cost £20,000 / 5 = £4,000 per month Step 4 – calculate the average annual cost 4,000 x 12 = £48,000 Thus the correct answer is (E), £48,000








