Answer:
Results are below.
Explanation:
<u>First, we need to structure the total cost of each car:</u>
<u></u>
Subcompact= 19,500 + 0.055*x
Sedan= 13,700 + 0.086*x
x= miles driven
<u>Now, we equal both formulas and isolate x:</u>
19,500 + 0.055x = 13,700 + 0.086x
5,800 = 0.031x
187,096.77 = x
The indifference point is 187,096.77 miles.
Prove:
Subcompact= 19,500 + 0.055*187,096.77= $29,790.32
Sedan= 13,700 + 0.086*187,096.77= $29,790.32
<u>Finally, the time required:</u>
Number of years= 187,096.77/18,000= 10.39 years