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I need help with this queation we are using the PAINFG method. thank you 10. You are looking into buying an extended vehicle warranty on
I need help with this queation we are using the PAINFG method. thank you
10. You are looking into buying an extended vehicle warranty on your car because someone suggested it was a good idea. Your vehicle is 5 years old with 50,000 mi. The maintenance cost is $2500 per year. It is expected to increase by $500 per year until year 12 when you donate the car to raise money for the Blind. Assume normal mileage. If the extended warranty cost cover all mechanical costs after a deduct of $1000/event. The annual extended warranty is $1500/year and you have 2 repairs per year. IS this a good deal. (hints - bring both the maintenance costs and the costs for the warranty, including deducts to the present. Note you are looking a the purchase when the vehicle is already 5 years old.) Assume the interest rate to consider is 4% Step by Step Solution
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