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:$25.20

Explanation:

Answer 2

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

`= (21)/(100)`

= 0.21

effective cost for the extended warranty = 0.21 × 960

= $ 201.6

`Effective\ cost\ per\ year = (201.6)/(8)`

= $25.2

Therefore the

effective cost per year of the extended warranty be $25.2

Option (d) is correct .

Hence proved