PPPEEAAASSSEEE HELP Consider the following situation, which involves two options. Determine which option is less expensive. Are there unstated factors that might affect your decision?
You currently drive 275 miles per week in a car that gets 16 miles per gallon of gas. You are considering buying a new fuel-efficient car for $18 comma 000 (after trade-in on your current car) that gets 44 miles per gallon. Insurance premiums for the new and old car are $1000 and $600 per year, respectively. You anticipate spending $1100 per year on repairs for the old car and having no repairs on the new car. Assume gas costs $3.50 per gallon. Over a five-year period, is it less expensive to keep your old car or buy the new car?
Over a five-year period, the cost of the old car is $ and the cost of the new car is $
Thus, over a five-year period, it is less expensive to keep the old car or buy the new car?