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Consider the following situation, which involves two options. Determine which option is less expensive. Are there unstated factors that might affect your decision? You currently
Consider the following situation, which involves two options. Determine which option is less expensive. Are there unstated factors that might affect your decision?
You currently drive miles per week in a car that gets miles per gallon of gas. You are considering buying a new fuelefficient car for $after tradein on your current car that gets miles per gallon. Insurance premiums for the new and old car are $ and $ per year, respectively. You anticipate spending $ per year on repairs for the old car and having no repairs on the new car. Assume gas costs $ per gallon. Over a fiveyear period, is it less expensive to keep your old car or buy the new car? Assume that there are weeks in a year.
Over a fiveyear period, the cost of the old car is $ and the cost of the new car is $ Thus, over a fiveyear period, it is less expensive to Round to the nearest dollar as needed.
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