A Consumer Is Trying to Decide Whether to Purchase Car

question 35

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 $450 per year. Car B costs $11,800 and has an mpg rating of 50, and insurance is $500 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)10 years
• B)31 years
• C)41 years
• D)18 years
• E)9 years

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Definitions:

Disfranchised

Individuals or groups deprived of certain rights or privileges, often used in the context of voting rights.

Systematically

Performing actions or procedures in a methodical, organized manner according to a specified system or plan.

Procedural Elements

The structured components or steps that make up a process, governing how something is to be done.

Vague and Open

Descriptions or statements that are intentionally non-specific and broad, allowing for a wide range of interpretation or response.