Answer the Question. -You Currently Drive 240 Miles Per Week in a Car

Multiple Choice

Answer the question.
-You currently drive 240 miles per week in a car that gets 16 miles per gallon of gas. A new fuel-efficient car costs $13,000 (after trade-in on your current car) and gets 40 miles per gallon.
Insurance premiums for the new and old car are $800 and $600 per year, respectively. You
Anticipate spending $1400 per year on repairs for the old car and having no repairs on the new car.
Assuming that gas remains at $3.50 per gallon, estimate the number of years after which the costs
Of owning the new and old cars are equal.

A) 5.1 years
B) 5.6 years
C) 4.6 years
D) 4.2 years