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\begin{tabular}{|c|c|c|c|}
\hline & \begin{tabular}{l}
Monthly \\
payment
\end{tabular} & \begin{tabular}{l}
Up-front \\
cost
\end{tabular} & \begin{tabular}{l}
Insurance \\
and gas
\end{tabular} \\
\hline \begin{tabular}{l}
Option A \\
Buy new
\end{tabular} & \begin{tabular}{l}
\[tex]$338 for \\
60 months
\end{tabular} & \$[/tex]2,500 & \begin{tabular}{l}
\[tex]$275 a \\
month
\end{tabular} \\
\hline \begin{tabular}{l}
Option B \\
Lease new
\end{tabular} & \begin{tabular}{l}
\$[/tex]229 for \\
36 months
\end{tabular} & \[tex]$3,925 & \begin{tabular}{l}
\$[/tex]275 a \\
month
\end{tabular} \\
\hline \begin{tabular}{l}
Option C \\
Buy used
\end{tabular} & \begin{tabular}{l}
\[tex]$250 for \\
36 months
\end{tabular} & \$[/tex]2,000 & \begin{tabular}{l}
\$225 a \\
month
\end{tabular} \\
\hline
\end{tabular}

Based on your budget, which transportation option is the best financial decision for you? Explain your answer in at least two sentences.



Answer :

GinnyAnswer
To determine the best financial decision, we will analyze the total cost of each transportation option over their respective terms.

Option A: Buy new
- Monthly payment: [tex]$338 for 60 months - Up-front cost: $[/tex]2,500
- Insurance and gas: [tex]$275 per month The total cost for Option A is: \[ (338 \times 60) + 2500 + (275 \times 60) = \$[/tex]39,280 \]

Option B: Lease new
- Monthly payment: [tex]$229 for 36 months - Up-front cost: $[/tex]3,925
- Insurance and gas: [tex]$275 per month The total cost for Option B is: \[ (229 \times 36) + 3925 + (275 \times 36) = \$[/tex]22,069 \]

Option C: Buy used
- Monthly payment: [tex]$250 for 36 months - Up-front cost: $[/tex]2,000
- Insurance and gas: [tex]$225 per month The total cost for Option C is: \[ (250 \times 36) + 2000 + (225 \times 36) = \$[/tex]19,100 \]

Comparing the total costs, Option C (Buy used) has the lowest total cost at $19,100. Therefore, based on the financial analysis, Option C is the best transportation option for you as it provides a significant savings over the other options.

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