Question

The extended warranty on a $960 dishwasher is 21% of the purchase price and lasts for eight years. What is the effective cost per year of the extended warranty?
a.
$28.80
b.
$45.20
c.
$23.78
d.
$25.20

Answer 1

Answer

Find out the what is the effective cost per year of the extended warranty .

To proof

As given

The extended warranty on a $960 dishwasher is 21% of the purchase price and lasts for eight years.

21% is written in the decimal form

$= \frac{21}{100}$

= 0.21

effective cost for  the extended warranty = 0.21 × 960

                                                                      = $ 201.6

$Effective\ cost\ per\ year = \frac{201.6}{8}$

                                                = $25.2

Therefore the

effective cost per year of the extended warranty be $25.2

Option (d) is correct .

Hence proved