You are considering two cars that you plan on keeping for 5 years. One has an EPA combined city and highway rating of 32 mpg. The second has an EPA rating of 34 mpg. Suppose gasoline costs $3.44 per gallon and you drive 10,000 miles each year.

-How much (in dollars) will you save in 1 year by purchasing the 34 mpg car?

-If you deposit that amount at the end of each year for the 5 years of ownership into an account that earns 4.2% compounded annually, how much (in dollars) will you save over 5 years?