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Anna's 5-year-old Jeep Wrangler requires repairs estimated at $7,000 to make it road worthy again. Her fiance, Bob suggested that she should buy a 3-year-old

 

Anna's 5-year-old Jeep Wrangler requires repairs estimated at $7,000 to make it road worthy again. Her fiance, Bob suggested that she should buy a 3-year-old used Range Rover Sport instead for $7,000 cash. Bob estimated the following costs for the two vehicles:

Wrangler Range Rover

Acquisition cost $30,000 $7,000

Repairs $7,000

Annual operating costs

(Gas, maintenance, insurance) $2,580 $1,700

What should Anna do? What are her savings in the first year?

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