Concept explainers
Making Decision. Consider the following situations, which each involve two options. Determine which option is less expensive. Are there unstated factors that might affect your decision?
41. You currently drive 250 miles per week in a car that gets 21 miles per gallon of gas. You are considering buying a new fuel-efficient car for $16,000 (after trade-in on your current car) that gets 45 miles per gallon. Insurance premiums for the new and old car are $800 and $400 per year, respectively, you anticipate spending $1500 per year on repairs for the old car and having no repairs on the new car. Assume gas costs $3.50 per gallon. Over a five-year period, is it less expensive to keep your old car or buy the new car?
Want to see the full answer?
Check out a sample textbook solutionChapter 4 Solutions
Using & Understanding Mathematics: A Quantitative Reasoning Approach (7th Edition)
- 1. In the Baltimore area a high-end Comcast cable package with HBO runs about $67 a month. What would be the yearly cost of the package?arrow_forward6. The car of your dreams costs P 2000000 today You have found a way to earn 15N tax free on an automatic purchase account. If you expect the cost of your dream car to increase by 10% per year, how much would you need to deposit in the automatic purchase account to provide for the purchase of the car S years from now? AP 1601416 6. P 2497789 CP 4022714 D.P 994353arrow_forwardYou always enjoyed a Starbucks Iced Oat Latte every day (5 days a week) on your way to work at a cost of $5.70 including tax. At lunch you'd pick up a sandwich and coffee from the bakery at your office building for an all-in cost of $12.50. You were tired after your long commute so you would order out three nights a week at a cost of about $20 per meal. You have been trying to save for a trip but never had any extra cash to invest. Then COVID hit and you had to work from home. Now that you are back at your office, you are bringing your own coffee, packing your own lunch, and only eating out occasionally. You estimate you are spending only about 10% weekly of what you were spending pre- covid and saving the rest. If you invest your weekly savings into a mutual fund with an annual rate of return (APR) of 6.5%, compounded weekly, a) How much will you have accumulated at the end of two years to fund your trip? b) How much would you have to deposit in one lump sum today to have the same…arrow_forward
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill