Answer to Question #58932 in Other Economics for zach
The interest cost of the car:
$4000*0.08 = $320 per year
Taking into account the maintenance cost, the total annual cost per year: $350+$320 = $670.
The cost per year = $4000/4 + the maintenance cost + the interest cost.
$1000 + $350 + $320 = $1670 per year
If we factor in the amount Amanda get back after she sells the car, we subtract $500 from what we got in one of the parts above.
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