Chapter $19$: Homework

In the late $1990$s$,$ car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. If the customer decided to keep the car, the customer would pay a price to the manufacturer, the "residual value," computed as $60\%$ of the new car price. The manufacturer would then sell the returned cars at auction. In $1999,$ manufacturers lost an "average of $$480$ on each returned car $($the auction price was, on average, $$480$ less than the residual value$).$

Suppose two customers have leased cars from a manufacturer. Their lease agreements are up$,$ and they are considering whether to keep $($and purchase at $60\%$ of the new car price$)$ their cars or return their cars. Two years ago, Amy leased a car valued new at $$17,000.$ If she returns the car, the manuinacturer could likely get $$11,900$ at auction for the car. Carlos also leased a car, valued new at $$13,000,$ two years ago. If he returns the car, the manufacturer could likely get $$6,500$ at auction for the car.

Use the following table to indicate whether each buyer is more likely to purchase or return the car.

$\backslash$table$[[$Buyer$,$Keep and Purchase Car,Return Car$],[$Amy$,,],[$Carlos$,,$