Question 8 • {MDVA} Healthy Living [Semester Only] (M)
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?
Answer
A
The limited warranty will end up costing the consumer $190.60 less.
B
The limited warranty will end up costing the consumer $45.60 less.
C
The full warranty will end up costing the consumer $317.10 less.
D
The full warranty will end up costing the consumer $192.40 less.
Explanation
The full warranty costs 35% of $965, or $337.75. The limited warranty costs 11% of $965, or $106.15, and the consumer still pays for the case and shipping, which total $145 + $41 = $186. So the limited warranty’s total cost is $106.15 + $186 = $292.15, which is $45.60 less than the full warranty. The limited warranty is the better deal: it costs $45.60 less.
AI-written and checked against the verified answer.