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If the owner earns 5% interest on her investments, determine the equivalent annual cost of owning a car with the following costs (EOY = end
If the owner earns 5% interest on her investments, determine the equivalent annual cost of owning a car with the following costs (EOY = end of year). Initial down payment = $2200
Annual payments = $5500,
EOY1EOY4 Prepaid insurance = $1500, growing 8% annually
Gas & oil & minor maintenance = $2000, growing 10% annually
Replacement tires = $650 at EOY4 & $800 at EOY8
Major maintenance = $2400 at EOY5
Salvage value = $3750 at EOY9
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