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?

Question

asked Feb 2, 2020 230k views

2 Answers

David Lowenfels · Answer 1 · 2020-02-08T04:31:52+0000

Answer:

$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.