A lawnmower costs $284, and the six-year extended warranty on the lawnmower costs 17% as much as the lawnmower itself. What is the effective price per year of the extended warranty?

Question

a.
$4.82
b.
$3.93
c.
$8.05
d.
$7.03

Answer 1

To find the effective price per year of the extended warranty for the lawnmower, we first need to calculate the cost of the warranty.

1. Calculate the cost of the extended warranty: \[ \text{Cost of Warranty} = 17% \text{ of } $284 = 0.17 \times 284 \] \[ \text{Cost of Warranty} = 0.17 \times 284 = 48.28 \]

2. Determine the effective price per year: Since the warranty lasts for six years, we can calculate the effective price per year by dividing the cost of the warranty by the number of years. \[ \text{Effective Price per Year} = \frac{\text{Cost of Warranty}}{6} = \frac{48.28}{6} \] \[ \text{Effective Price per Year} \approx 8.047 \] Rounding to two decimal places gives us approximately $8.05.

Therefore, the effective price per year of the extended warranty is c. $8.05.