Andy currently drives 400 miles per week in a car that gets you 16 miles per gallon of gas. He is considering buying a new fuel efficient car for $12,000 after the trade in allowance in your current car, which gets 45 miles per gallon. Insurance premium for the new and old car are $800 and $600 per year, respectively. Andy anticipates spending $1200 per year on repairs to the old car and having no repairs on the new car. Assume that gas costs $3.50 per gallon. Over a 5 year period is it less expensive to keep the old car or buy the new car, explain?
Andy currently drives 400 miles per week in a car that gets you 16 miles per gallon of gas. He is considering buying a new fuel efficient car for $12,000 after the trade in allowance in your current car, which gets 45 miles per gallon. Insurance premium for the new and old car are $800 and $600 per year, respectively. Andy anticipates spending $1200 per year on repairs to the old car and having no repairs on the new car. Assume that gas costs $3.50 per gallon. Over a 5 year period is it less expensive to keep the old car or buy the new car, explain?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Andy currently drives 400 miles per week in a car that gets you 16 miles per gallon of gas. He is considering buying a new fuel efficient car for $12,000 after the trade in allowance in your current car, which gets 45 miles per gallon. Insurance premium for the new and old car are $800 and $600 per year, respectively. Andy anticipates spending $1200 per year on repairs to the old car and having no repairs on the new car. Assume that gas costs $3.50 per gallon. Over a 5 year period is it less expensive to keep the old car or buy the new car, explain?
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