You currently drive 250 miles per week in a car that gets 24 miles per gallon of gas. you are considering buying a new fuel-efficient car for $14 comma 000 (after trade-in on your current car) that gets 53 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?

It is less expensive to keep your old car.

Explanation:

We have been given that you currently drive 250 miles per week in a car that gets 24 miles per gallon of gas.  

1 year equals 52 weeks.

5 years equals 260 weeks.

The old car gives a mileage of 24 miles per gallon of gas.

Therefore, the total of using old car for 5 years is $18979.16.

We are told that new car gives a mileage of 53 miles per gallon.

Since the cost of using new car for 5 years is greater than cost of using old car for 5 years, therefore, it is less expensive to keep your old car.

answer; i do believe that the correct answer is ; ///are valued more highly than their cost;

answer; a large down payment,a longer term loan, would result in a lower monthly payment;