The formula to calculate the total cost based on miles driven at a rate of 62.5 cents per mile is:
\[ \text{TC} = \text{M} \times \text{R} \]
Where:
62.5 cents per mile is a rate that is often used for reimbursement purposes. It means that for every mile driven, the driver will be reimbursed 62.5 cents. This rate can be used by businesses to reimburse their employees for the use of their personal vehicle for business purposes, or by the IRS to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
Let's assume you drove 500 miles for business purposes.
Using the formula to calculate the Total Cost:
\[ \text{TC} = 500 \times 0.625 = 312.50 \]
The Total Cost for driving 500 miles at a rate of 62.5 cents per mile is $312.50.
