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?
Answer
A
$4.82
B
$3.93
C
$8.05
D
$7.03
Explanation
The warranty costs 17% of $284, or 0.17 × $284 = $48.28. Divide that cost by 6 years: $48.28 ÷ 6 ≈ $8.05 per year. The effective price is $8.05 per year.
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