A vacuum cleaner costs $68, and the full-replacement extended warranty costs $22. If the manufacturer sells 360,920 vacuum cleaners under warranty and must replace 15% of them to honor the warranties, how much will the replacement costs be?
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?
A complete desktop computer costs $965. A replacement monitor costs $238, a replacement hard drive costs $260, a replacement outer case costs $145, labor to repair it costs $77, and shipping it to and from a repair center costs $41. A full warranty, which covers the entire cost of repairing the computer, is 35% of the purchase price. A limited warranty, which only covers internal parts and labor, costs 11% of the purchase price. If the computer tower is damaged, requiring a new hard drive, new case, labor, and shipping, which warranty will be the better deal, and by how much?
The extended warranty on a mini-fridge costs $41.25. If the warranty is 12.5% of the normal price, what is the cost of the mini-fridge itself, to the nearest dollar?
When considering whether or not to buy an extended warranty for a large purchase, what are some factors that you should consider?
The durations and coverage of the manufacturer’s warranty, as well as whether or not the extended warranty overlaps with it, should be taken into consideration. The likelihood of the item needing repairs, as well as the cost of repairing it, should also be considered. Furthermore, it is helpful to consider the cost of the warranty, its relation to the cost of the item, and whether it is a full or limited warranty.
When might a limited warranty be a better choice than a full warranty?
A limited warranty can be more economical than a full warranty. If the conditions excluded by the limited warranty are either not very expensive or are exceedingly unlikely to ever arise, but you still want to have some protection for your purchase, a limited warranty can be a better deal.
A microwave costs $89, with a $17 full-replacement warranty. If the manufacturer sells 475,360 warranties and has to honor 7.5% of them, how much profit did the manufacturer make from the warranties?
A set of floor speakers costs $466. If the extended warranty on the speakers costs 32% of the price of the speakers, how much does the extended warranty cost?
A set of floor speakers costs $466. If the extended warranty on the speakers costs 32% of the price of the speakers, how much does the extended warranty cost?
The extended warranty on a mini-fridge costs $41.25. If the warranty is 12.5% of the normal price, what is the cost of the mini-fridge itself, to the nearest dollar?
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?
A complete desktop computer costs $965. A replacement monitor costs $238, a replacement hard drive costs $260, a replacement outer case costs $145, labor to repair it costs $77, and shipping it to and from a repair center costs $41. A full warranty, which covers the entire cost of repairing the computer, is 35% of the purchase price. A limited warranty, which only covers internal parts and labor, costs 11% of the purchase price. If the computer tower is damaged, requiring a new hard drive, new case, labor, and shipping, which warranty will be the better deal, and by how much?
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