Keep the Old or Buy the New?
Suppose that you drive, on average, 155 miles per week to commute to work and usual activities. With gas prices at $3.75 per gallon, you are considering buying a new fuel efficient car, and want to know if it would be financially worth it.
You currently own an older pickup that is paid for. It gets 16 miles per gallon for average fuel efficiency. It has been a great vehicle, but with its age it needs repairs and maintenance that average $950 per year (as long as nothing serious goes wrong).
You are considering buying a newer import car that will cost a total of $12000 over a three-year loan process. The newer car gets 42 miles per gallon and would only require an average of $15 per month for general maintenance.
Assuming the 52 weeks to a year, quantify the total costs (gas, maintenance/repairs, purchase) for each scenario over the three years . . .
6. (Round to the nearest dollar and do not use commas.)
Scenario Total Cost for Three Years
Keep Old Car . . .
7. (Round to the nearest dollar and do not use commas.)
Scenario Total Cost for Three Years
Buy New Car . . .
