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?

Answer 1

50

Explanation:

Answer 2

$25.20

Explanation:

Find 21% of $960

.21*960=201.6

Since there are 8 years, the cost per year will be the total cost divided by 8.

201.6/8=25.2

The cost per year is $25.20 on the extended warranty.