Question

Lily goes car shopping and finds two cars. The first one burns fossil fuel, gasoline, that sells for $18,000. It will cost $100 each month to buy fuel and maintain this car. The second car is a fuel cell car that is cleaner for the environment, but costs $22,400. It will cost $60 each month to run and maintain this car.

If Lilly keeps the car for 5 years, how much will each car cost to buy and run over the 5 year period? Which car should Lilly buy?

Answer 1

Cost to buy and run the first car for 5 years=$24000

Cost to buy and run the second car for 5 years=$26000

I think we should buy the first car, because It is cheaper to buy and maintain

Explanation:

first car:

Cost $18000 to buy

Cost $100 to maintain each month

5years =5 x 12=60months

Cost to maintain for 60months=100x60=$6000

First car cost to buy and run over the 5 year period=18000+6000=$24000

Second car:

It cost $22400 to buy

Cost $60 to maintain each month

5years=60months

Cost to maintain for 60months is 60 x 60=$3600

Cost to buy and run over the second car for 5years is 22400+3600=$26000