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.

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Answer:

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Quintín

Based on the percentage of the extended warranty and the number of years it is to last, the effective cost per year is d. $25.20

First find the total warranty coverage for the dishwasher:

= Warranty percentage x Cost of dishwasher

= 21% x 960

= $201.60

The effective cost per year is:

= Total warranty / Number of years

= 201.60 / 8 years

= $25.20

In conclusion, the cost is $25.20.

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