Answer the question.
-You currently drive 360 miles per week in a car that gets 20 miles per gallon of gas. You are considering buying a new fuel-efficient car for $12,000 (after trade-in on your current car)that gets
60 miles per gallon. Insurance premiums for the new and old car are $900 and $600 per year,
Respectively. You anticipate spending $1400 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? By how much?

Question

Quizplus · Accepted Answer

The new car is more fuel-efficient and has lower repair costs, leading to savings over five years despite higher insurance costs. Calculating total costs for both scenarios over five years, including gas, insurance, repairs, and the cost of the new car, shows the new car is $4420 less expensive.

Answer the Question. -You Currently Drive 360 Miles Per Week in a Car