You are deciding whether to buy a new or two-year-old car (of the same make). Your decision will be based on which car will have cost you less when you resell it at the end of three years. Your cost consists of two parts: the loss in value of the car and repairs. A new car costs $25000 and loses 14% of its value each year. Repairs are $400 the first year and increase by 18% each subsequent year.

(c) Find the total cost of owning a new car for three years.

(d) Find the total cost of owning the two-year-old car for three years.

Question

You are deciding whether to buy a new or two-year-old car (of the same make). Your decision will be based on which car will have cost you less when you resell it at the end of three years. Your cost consists of two parts: the loss in value of the car and repairs. A new car costs $25000 and loses 14% of its value each year. Repairs are $400 the first year and increase by 18% each subsequent year.

(c) Find the total cost of owning a new car for three years.

(d) Find the total cost of owning the two-year-old car for three years.