Substituting the values of k and m in eqn. (1), we have:
C = 0.25*D + 1200 ........(4)
Answers:
(1) The fixed cost of owning the car = m = $1200
(2) The equation relating the total cost to the distance driven is:
C = 0.25*D + 1200
where C is the total cost and D is the distance driven.
(3) Substituting the value 15000 for D in eqn. (4), we have:
C = 0.25*15000 + 1200
=> C = 4950
So the annual cost is $4950 if 15000 km are driven.