A Consumer Is Trying to Decide Whether to Purchase Car

Multiple Choice

A consumer is trying to decide whether to purchase car A or car B. Car A costs $10,000 and has an mpg rating of 30, and insurance is $500 per year. Car B costs $11,600 and has an mpg rating of 50, and insurance is $550 per year. Assume that the consumer drives 15,000 miles per year and that the price of gas remains constant at $1.25 per gallon. Based only on these facts, determine how long it will take for the total cost of car B to become less than that of car A.

A) 27 years
B) 9 years
C) 8 years
D) 17 years
E) 37 years