document.write( "Question 1036031: You currently drive 360 miles per week in a car that gets 20 miles per gallon of gas. You are considering buying a new fuel-efficient car for $12,000 (after trade-in on your current car) that gets 60 miles per gallon. Insurance premiums for the new and old car are $900 and $600 per year, respectively. You anticipate spending $1400 per year on repairs for the old car and no repairs for 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 to buy the new car? By how much? \n" ); document.write( "

Algebra.Com's Answer #650618 by Theo(13342) $\"\"$ $\"About$

You can put this solution on YOUR website!
360 miles per week * 52 = 18720 miles per year.
\n" ); document.write( "18,720 miles per year * 5 = 93600 miles in 5 years.\r
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\n" ); document.write( "\n" ); document.write( "600 dollars per year insurance * 5 = 3000 dollars in 5 years for the old car.
\n" ); document.write( "900 dollars per year insurance * 5 = 4500 dollars in 5 years for the new car.\r
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\n" ); document.write( "\n" ); document.write( "93600 miles / 20 = 4680 gallons of gas in 5 years for the old car.
\n" ); document.write( "93600 miles / 60 = 1560 gallons of gas in 5 years for the new car.\r
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\n" ); document.write( "\n" ); document.write( "4680 gallons of gas at 3.50 dollars per gallon equals 16380 dollars in 5 years for the old car..
\n" ); document.write( "1560 gallons of gas at 3.50 dollars per gallon equals 5460 dollars in 5 years for the new car.\r
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\n" ); document.write( "\n" ); document.write( "1400 dollars a year car repairs * 5 = 7000 dollars in 5 years for the old car.\r
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\n" ); document.write( "\n" ); document.write( "the total cost for the new car is 21960 as detailed below.\r
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\n" ); document.write( "\n" ); document.write( "12000 for the price of the car
\n" ); document.write( "4500 for insurance
\n" ); document.write( "5460 for gas\r
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\n" ); document.write( "\n" ); document.write( "the total cost for the old car is 26380 as detailed below.\r
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\n" ); document.write( "\n" ); document.write( "3000 for insurance
\n" ); document.write( "16380 for gas
\n" ); document.write( "7000 for repairs\r
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\n" ); document.write( "\n" ); document.write( "the difference is 26380 - 21960 = 4420.\r
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\n" ); document.write( "\n" ); document.write( "the new car is less expensive over the 5 years by 4420 dollars.\r
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\n" ); document.write( "\n" ); document.write( "you can show this in a table as shown below:\r
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document.write( "                 old car         new car             old car minus new car\r\n" );
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document.write( "car              0               12000                      -12000\r\n" );
document.write( "insurance        3000            4500                       -1500\r\n" );
document.write( "gas              16380           5460                        10920\r\n" );
document.write( "repairs          7000            0                           7000\r\n" );
document.write( "\r\n" );
document.write( "total            26380           21960                       4420\r\n" );
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\r
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\n" ); document.write( "\n" ); document.write( "the old car is more expensive than the new car by 4420 dollars over the 5 year period.\r
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