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 $550 per month (starting next month) on average for maintenance, gas, property tax and insurance. You will make these payments for 5 years. Alternatively, you can buy a new car and pay $30,000 today and $350 per month (starting next month) on average for maintenance, gas, property tax and insurance. You will make these payments for for 5 years. If your investments earn 6% APR (compounded monthly), which alternative is cheaper in present value terms and by how much?

keep existing car saves $19,655

keep existing car saves $20,638

get new car, saves $20,692

keep existing car saves $19,082