Answer:
a) The equivalent annual costs of the Econo-Cool models= $436.50
b) The equivalent annual costs of the of Luxury Air models = $515
c)Econo-cool model
d 1 .(i) $464.15
(ii) $597.95
d 2 . Econo-cool model
Explanation:
a) Econo-cool model
Purchase price= $350
Discount =21%
Electricity bill= $160 per year
Annual cost per year will be
$350 * 79/100 =$276.50 ------after applying the 21% discount
$276.50+$160 =$436.50 -------after adding electricity cost per year
The equivalent annual costs of the Econo-Cool models= $436.50
b) Luxury Air Models
Purchase price at the shop=$550
Discount =21%
Buying price =79/100*$500 = $395
Electricity cost = $120 per year
Annual cost = $395+$120 =$515
The equivalent annual costs of the of Luxury Air models = $515
c) The Econo-cool model
d (1) Econo-cool model
$350 *110/100 =$ 385 -----due to inflation
Apply the discount = 385*79/100 =$304.15
Add the cost of electricity = $304.15+$160 =$464.15
For Luxury Air model
$550*110/100 =$605
Apply the discount = $605*79/100 =$477.95
Add electricity bill = $477.95 +$120 =$597.95
d(2) Econo-cool model
