Question

A new cell phone has a purchase price of $225. With the extended warranty, the total cost comes to $289. What percent of the purchase price is the price of the warranty? a. 28% b. 22% c. 25% d. 20% Please select the best answer from the choices provided A B C D.

Answer 1

A) 28% not B.

Explanation:

Answer 2

B (22%) is the answer.

Skills needed: Financial Math, Percentage Computations

Explanation:

1) First, let's calculate the cost of the extended warranty. That would be the new price minus the old price.

- This is due to the fact that the new price is phone + warranty, while the old price is just the phone.

- So
`\text{new price } - \text{old price} = 289-225=64`...warranty=64$

2) The warranty is 64 dollars. To find out what percent of the cost it takes up, we do
`(warranty)/(totalprice)` --> In this case, the
`totalprice` is the new price, since the warranty is included in this price.

- Our fraction would be:
`(64)/(289)`

- Divide this out, you get a decimal of: 0.2214...

- To get a percent, multiply by the decimal by 100, and it is
`22.14`%

22.14 rounds to 22, so 22% is the answer, and that is b.

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