You currently drive 300 miles per week in a car that gets 15 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 50 miles per gallon. Insurance premiums for the new and old car are $800 and $600 per year, respectively. You anticipate spending $1200 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?
You currently drive 300 miles per week in a car that gets 15 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 50 miles per gallon. Insurance premiums for the new and old car are $800 and $600 per year, respectively. You anticipate spending $1200 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?
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.57TI: What is the total effect on the economy of a government tax rebate of $1,000 to each household in...
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You currently drive 300 miles per week in a car that gets 15 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 50 miles per gallon. Insurance premiums for the new and old car are $800 and $600 per year, respectively. You anticipate spending $1200 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?
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