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You currently drive 240 miles in a car that gets 24 miles per gallon of gas. you are considering buying a new fuel-efficient car for $ 13,000 (after trade-in on your current car) that gets 40 miles per gallon.Insurance premiums for the new and old car are $ 720 and $ 500 per year, respectively. You anticipatespending $ 1050 per year on repairs for the old car and having no repairs on the new car. Assume gas costs $ 2.45 per gallon. Over a seven-year period, is it less expensive to keep your old car or buy a new car? By how much? A) the new car is $3420.08 less expensive B) the old car is $3622.80 less expensive C) the new car is $3420.08 less expensive D) the old car is $3622.80 less expensive

You currently drive 240240 miles in a car that gets 2424 miles per gallon of gas. you are considering buying a new fuel-efficient car for $\$13,00013,000 (after trade-in on your current car) that gets 4040 miles per gallon.Insurance premiums for the new and old car are $\$720720 and $\$500500 per year, respectively. You anticipatespending $\$10501050 per year on repairs for the old car and having no repairs on the new car. Assume gas costs $\$2.452.45 per gallon. Over a seven-year period, is it less expensive to keep your old car or buy a new car? By how much?\newline A) the new car is $3420.08\$3420.08 less expensive\newlineB) the old car is $3622.80\$3622.80 less expensive\newlineC) the new car is $3420.08\$3420.08 less expensive\newlineD) the old car is $3622.80\$3622.80 less expensive

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Full solution

Q. You currently drive 240240 miles in a car that gets 2424 miles per gallon of gas. you are considering buying a new fuel-efficient car for $\$13,00013,000 (after trade-in on your current car) that gets 4040 miles per gallon.Insurance premiums for the new and old car are $\$720720 and $\$500500 per year, respectively. You anticipatespending $\$10501050 per year on repairs for the old car and having no repairs on the new car. Assume gas costs $\$2.452.45 per gallon. Over a seven-year period, is it less expensive to keep your old car or buy a new car? By how much?\newline A) the new car is $3420.08\$3420.08 less expensive\newlineB) the old car is $3622.80\$3622.80 less expensive\newlineC) the new car is $3420.08\$3420.08 less expensive\newlineD) the old car is $3622.80\$3622.80 less expensive
  1. Question Prompt: Question prompt: Determine whether it is less expensive to keep the old car or buy the new car over a 77-year period and by how much.
  2. Identify Costs: Identify the costs associated with the old car and the new car over the seven-year period.
  3. Calculate Old Car Total: Calculate the total cost for the old car over 77 years.
  4. Calculate New Car Total: Calculate the total cost for the new car over 77 years.
  5. Compare Total Costs: Compare the total costs to find which is less expensive.
  6. Calculate Cost Difference: Calculate the difference in cost between the old car and the new car.
  7. Final Conclusion: The new car is $3420.08\$3420.08 less expensive than the old car.

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