Question: Question 11 1 pts You are trying to decide whether to keep your current car or buy a new car. If you keep your current
Question 11 1 pts You are trying to decide whether to keep your current car or buy a new car. If you keep your current car you will pay $400 per month (starting next month) on average for maintenance, gas, property tax and insurance. You will make these payments for 10 years. Alternatively, you can buy a new car and pay $7,000 today and $350 per month (starting next month) on average for maintenance, gas, property tax and insurance. You will make these payments for 10 years. If your investments earn 4% APR (compounded monthly), which alternative is cheaper in present value terms and by how much? get new car, saves $2.170 O keep existing car saves $2,061 keep existing car saves $2.165 O keep existing car saves $2.001
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