Answer the following questions using the information below:
John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash. Sherry estimated the following costs for the two cars:
$\begin{array}{lrr}&\text { Trail Blazer }&\text { Grand Cherokee }\
\text { Acquisition cost } & \$ 25,000 & \$ 6,000 \
\text { Repairs } & \$ 6,000 & - \
\text { Annual operating costs } & & \
\text { (Gas, maintenance, insurance) } & \$ 2,280 & \$ 2,100
\end{array}$
-What should John do? What are his savings in the first year?
A) Buy the Grand Cherokee; $8,100
B) Fix the Trail Blazer; $3,180
C) Buy the Grand Cherokee; $180
D) Fix the Trail Blazer; $6,280

Question

Answer the following questions using the information below:
John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash. Sherry estimated the following costs for the two cars:
 $\begin{array}{lrr}&\text { Trail Blazer }&\text { Grand Cherokee }\
\text { Acquisition cost } & \$ 25,000 & \$ 6,000 \
\text { Repairs } & \$ 6,000 & - \
\text { Annual operating costs } & & \
\text { (Gas, maintenance, insurance) } & \$ 2,280 & \$ 2,100
\end{array}$
-What should John do? What are his savings in the first year?
A) Buy the Grand Cherokee; $8,100
B) Fix the Trail Blazer; $3,180
C) Buy the Grand Cherokee; $180
D) Fix the Trail Blazer; $6,280

Quizplus · Accepted Answer

Buying the Grand Cherokee costs $6,000 with $2,100 in annual operating costs, totaling $8,100. Fixing the Trail Blazer costs $6,000 with $2,280 in annual operating costs, totaling $8,280. The savings with the Grand Cherokee is $180.

Answer the Following Questions Using the Information Below: John's 8-Year-Old

Answer the Following Questions Using the Information Below:
John's 8-Year-Old