Calculating the Total Cost of Your Phone with Warranty
Explanation:
The total cost of the phone is computed as:
Total cost = Cost of phone for 2 years + Cost of warranty coverage for 2 years
Firstly, the cost of phone for 2 years is computed as:
Cost of phone =
(For first year) Per month Cost à 12 months + (For second year) Per month Cost à 12 months
= $39.95 Ã 12 + $39.95 Ã 12
= $479.4 + $479.4
= $958.8
Then, the cost of warranty coverage for 2 years is computed as:
Cost of warranty =
(For first year) Per month Cost à 12 months + (For second year) Per month Cost à 12 months
= $12.99 Ã 12 + $12.99 Ã 12
= $155.88 + $155.88
= $311.76
Therefore, the total cost would be:
Total cost = $958.8 + $311.76
Total cost = $1,270.56