frankie’s weekly budget includes a long - term goal of purchasing a car. he is saving $15 a week toward that…

frankie’s weekly budget includes a long - term goal of purchasing a car. he is saving $15 a week toward that goal. he is considering saving up his money to purchase his grandmother’s older car. frankie knows his grandmother has maintained the car and it is in good condition. she is also giving him a greatly discounted price of $800. what should frankie consider before buying the car? choose four correct answers. what he will be giving up if he spends $800 on the car the cost to maintain (oil, tires, gas, brakes) and insure the car if an alternate mode of transportation, such as a bicycle or the bus, is sufficient for his needs his short - and long - term financial goals how many of his friends have cars

frankie’s weekly budget includes a long - term goal of purchasing a car. he is saving $15 a week toward that goal. he is considering saving up his money to purchase his grandmother’s older car. frankie knows his grandmother has maintained the car and it is in good condition. she is also giving him a greatly discounted price of $800. what should frankie consider before buying the car? choose four correct answers. what he will be giving up if he spends $800 on the car the cost to maintain (oil, tires, gas, brakes) and insure the car if an alternate mode of transportation, such as a bicycle or the bus, is sufficient for his needs his short - and long - term financial goals how many of his friends have cars

Answer

Brief Explanations:

To determine what Frankie should consider before buying the car, we analyze each option:

  1. "what he will be giving up if he spends $800 on the car": Opportunity cost is crucial in financial decisions. Spending $800 on the car means he can't use that money for other goals, so this is relevant.
  2. "the cost to maintain (oil, tires, gas, brakes) and insure the car": Owning a car involves ongoing costs beyond the purchase price. Maintenance and insurance are necessary expenses to consider, so this is relevant.
  3. "his short - and long - term financial goals": The car purchase should align with his overall financial plans. If he has other short - or long - term goals (like saving for college, a house, etc.), buying the car could impact those, so this is relevant.
  4. "if an alternate mode of transportation, such as a bicycle or the bus, is sufficient for his needs": Before buying a car, he should check if he really needs a car. If public transport or a bike works, buying a car might be unnecessary, so this is relevant.
  5. "how many of his friends have cars": His friends' car ownership is not relevant to his own financial situation, ability to maintain the car, or transportation needs. So this is not a relevant consideration.

Answer:

  • what he will be giving up if he spends $800 on the car
  • the cost to maintain (oil, tires, gas, brakes) and insure the car
  • his short - and long - term financial goals
  • if an alternate mode of transportation, such as a bicycle or the bus, is sufficient for his needs