For Michelle, one of the most exciting aspects of landing a full-time job was being able...

Transcribed Image Text:

For Michelle, one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will be working in an urban area, she will need a reliable vehicle to travel to client locations outside the city. Michelle is trying to decide if she should buy a new vehicle or a slightly used vehicle, or lease a new(er) vehicle. She has had her eye on a dazzling blue SUV; it stares at her every time she drives by the lot. But she's not sure if she can justify its cost. Here are the costs and benefits she has gathered for each of these options: Monthly payment Time frame Warranty Full coverage insurance Operating cost Expected mileage per year Safety features $470 Buy New 6 years Excellent for 100,000 miles $210 per month $0.20 per mile 13,500 Maximum $330 Buy Used 4 years Excellent for next 40,000 miles only $160 per month $0.20 per mile 13,500 Moderate Lease Midnight-Blue SUV $280 plus $2 per mile if over 10,000 miles per year 2 years Excellent for length of lease $200 per month $0.20 per mile 13,500 Maximum (a) Your answer is partially correct. Identify the relevant costs associated with each of Michelle's three options. (Round answers to 2 decimal places, e.g. 15.25.) Lease Midnight Blue SUV Total average monthly cost Buy New $ Buy Used $ For Michelle, one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will be working in an urban area, she will need a reliable vehicle to travel to client locations outside the city. Michelle is trying to decide if she should buy a new vehicle or a slightly used vehicle, or lease a new(er) vehicle. She has had her eye on a dazzling blue SUV; it stares at her every time she drives by the lot. But she's not sure if she can justify its cost. Here are the costs and benefits she has gathered for each of these options: Monthly payment Time frame Warranty Full coverage insurance Operating cost Expected mileage per year Safety features $470 Buy New 6 years Excellent for 100,000 miles $210 per month $0.20 per mile 13,500 Maximum $330 Buy Used 4 years Excellent for next 40,000 miles only $160 per month $0.20 per mile 13,500 Moderate Lease Midnight-Blue SUV $280 plus $2 per mile if over 10,000 miles per year 2 years Excellent for length of lease $200 per month $0.20 per mile 13,500 Maximum (a) Your answer is partially correct. Identify the relevant costs associated with each of Michelle's three options. (Round answers to 2 decimal places, e.g. 15.25.) Lease Midnight Blue SUV Total average monthly cost Buy New $ Buy Used $

Answer rating: 100% (QA)

Relevant Cost ... View the full answer