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Mathematics, 23.05.2021 01:00 alaynajk04
1. A health plan insurer provides its representatives with a car for their official use in the company. The company must determine whether to buy or rent the car they will use. The company has the following options:
• Buy the car with a down payment of $ 50,000, plus 24 fixed monthly payments of $ 3,500 that include insurance. At the end of the 24 months, the car can be sold for $ 59,400.
• Rent a car for $ 2,200 per month plus $ 0.15 per mile traveled and a one-time payment of $ 7,500 for auto insurance for two years.
The company estimates the average of its trips per month will be 850 miles per month for the next two years. Which option is the most convenient for the company in terms of lower costs? (15 points)
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