John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $7,000 to make it road worthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $7,000 cash. Sherry estimated the following costs for the two cars:

What should John do? What are his savings in the first year?

Question

John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $7,000 to make it road worthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $7,000 cash. Sherry estimated the following costs for the two cars:

What should John do? What are his savings in the first year?

Quizplus · Accepted Answer

Trail Blazer ($7,000 + $2,580) - Grand Cherokee ($7,000 + $1,700) = $880 cost savings when choosing the Grand Cherokee option

John's 8-Year-Old Chevrolet Trail Blazer Requires Repairs Estimated at $7,000