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You currently drive 300 miles per week in a car that gets 30 miles per gallon. You are thinking of buying a new fuel-efficient car

You currently drive 300 miles per week in a car that gets 30 miles per gallon. You are thinking of buying a new fuel-efficient car for $12,000 (after trade-in on your current car) that gets you 50 miles per gallon. Car insurance costs $600 per year for the old car and $800 per year for the new car. You anticipate spending 1,200 per year on repairs and maintenance on the old car, but none for the new car. Assume gas costs 6.50 per gallon. Over the next 5 years is it less expensive to keep your old car or buy the new car

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