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04) 25 pts - For this question, you may use either a spreadsheet or an empty sheet with your own handwriting. You are willing to
04) 25 pts - For this question, you may use either a spreadsheet or an empty sheet with your own handwriting. You are willing to buy a new car that costs $8,000. During the first year of its use the car has fuel and maintenance cost of $1,000. The fuel and maintenance cost increases by $1,000 in each of the following years compared to its previous year. To ease the accounting process, you assume that the fuel and maintenance cost occurs at the end of each year. Also assume that the cost of purchasing the car does not increase in years. Given the fixed interest rate of 10%, how long should you keep the car until it is replaced by a new identical car? Assume that you will give away the car for free to your friend by the time you buy a new one
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