Q123. Suppose I am sitting on $20,000 and I am trying to figure out whether or not to use it to buy a car. I have a very limited life and have determined that if I buy the car I will have to pay $800 insurance and about 10 cents per mile to operate it and I drive 2500 miles per year. If I own a car I'll drive rather than take the bus on approximately 300 local commutes (saving $1000 and 150 hours net). My time is worth $50 per hour. An alternative would be to put the $20,000 into an investment vehicle (so to speak) that would pay me 7.5% annually.