time value of money, Microeconomics

My current car gets 10 miles to the gallon and no resale value, but it will last 5 years for sure. I can always buy a new car for 8000 dollars that gets 20 miles to the gallon. A gallon of gas costs $2 and I drive 6000 miles a year. Interest rate is 5%.

If I am interest in only saving money, should I buy a new car now or rather wait until my current car dies?
Posted Date: 10/9/2014 11:38:45 AM | Location : United States







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