You are buying a car that comes with a one-year warranty and are considering whether to purchase an extended warranty for $375. The extended warranty covers the two years immediately after the one-year warranty expires. You estimate that the yearly expenses that would have been covered by the extended warranty are $150 at the end of the first year of the extension and $250 at the end of the second year of the extension. The interest rate is 5% per year, compounded annually. Should you buy the extended warranty? Explain.