A $15,000 car that lasts five years with an average annual operating cost of $8,000, or a $20,000 car that lasts six years with an average annual operating cost of $7,000

Finance Dec 31, 2021

A $15,000 car that lasts five years with an average annual operating cost of $8,000, or a $20,000 car that lasts six years with an average annual operating cost of $7,000. The interest rate is 8 percent for both options. Which option should you go for?