Question

A space heater costing $235 offers an extended warranty for 15% of the purchase price. If the local repair shop will fix a space heater for $12, how many times must the space heater need repairs for the warranty to be worth the cost?
a.
one
b.
two
c.
three
d.
four

Answer 1

15% of $235 = 0.15 × 235 = $35.25.
Each repair costs $12, so after 2 repairs you spend $24, after 3 repairs $36.
Since $36 ≥ $35.25, you must have repairs 3 times for the warranty to be worth it.

Answer: c. three