I do no understand how I solve this problem so I am seeking clarity on this.

You are currently without a vehicle and are considering buying either a new fuel efficient Rabbit that costs $40,000 and gets 40 mpg or a used Suburban SUV (sport utility vehicle) that costs $25.000 and gets 12 mpg. Next year you expect to take a new job in Tokyo which will force you to sell your vehicle after one year. We will assume no maintenance costs on either vehicle, but the Rabbit is expected to depreciate by $5000 and the SUV is expected to depreciate by $2000. That is, one year from now you will be able to sell the Rabbit for $35,000 or you will be able to sell the SUV for $23,000. (Note: we are assuming that new cars depreciate more rapidly than used cars.) You have enough savings to pay cash for either vehicle, but the interest rate you can earn on your savings is R=5%. You expect to drive 15,000 miles during the coming year. We will assume that you are indifferent between the two vehicles. How high does the price of gasoline have to be to make it cheaper to buy the Rabbit