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Should Jim sell his gas - guzzler? Jim's 1 9 9 8 minivan is quite functional, but it only averages 2 0 miles per gallon

Should Jim sell his gas-guzzler?
Jim's 1998 minivan is quite functional, but it only averages 20 miles per gallon (mpg). He has found a somewhat newer vehicle (roughly the same functionality) that averages 26mpg. He can sell his current minivan for $2800 and purchase the newer vehicle for $4,000. Assume a cost of gasoline $4.00 per gallon How many miles per year must Jim drive if he wants to recover his investment in three years? Assume an interest rate of 6%, zero salvage value for either vehicle after three years, and identical maintenance cost.
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