Problem
If you drive 10,000 miles per year, which tire should you buy? Tire A costs $65 and should last 40,000 miles. Tire B costs $85 and should last 60,000 miles. You have an outstanding balance on your credit card, and you are paying 20% as an effective annual rate.
(a) What are comparable EACs for the two alternatives?
(b) What are comparable PWs for the two alternatives?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.