A Student Bought a Used Car for $10,000 and Resold

Multiple Choice

A student bought a used car for $10,000 and resold it one year later for $6,500. Insurance, license, and operating costs for the year were $1,500. What was his economic cost of owning and operating the car for the year if the market rate of interest was 10 percent?

A) $3,500
B) $5,000
C) $6,000
D) $8,500