Find the equivalent uniform annual cost


Problem

The purchase of a used pickup for $9000 is being considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $990 per year if the truck is driven 10,000 miles. The salvage value after 5 years of use drops about 8% per mile. Find the equivalent uniform annual cost if the interest rate is 8%. How much does this change if the annual mileage is 15,000? 5000?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Find the equivalent uniform annual cost
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