- Identify the purchase price (\(\$140\)) and the warranty rate (\(18\%\)).
- Convert the percentage to a decimal: \(18\% = 0.18\).
- Multiply the decimal by the purchase price: \(0.18 \times 140 = 25.20\).
- Select the matching option, which is B: \(\boxed{B}\).
Explanation
- Analysis of the Problem
To find the cost of the extended warranty, we need to calculate 18% of the purchase price of the ceiling fan. The purchase price is given as \(\$140\). The warranty cost is calculated by multiplying the percentage (in decimal form) by the total price. Therefore, the formula is: \(\text{Warranty Cost} = \text{Percentage} \times \text{Purchase Price}\).
- Calculating the Warranty Cost
To perform the calculation, convert the percentage to a decimal: \(18\% = 0.18\). Now, multiply this decimal by the price of the fan:
\[\text{Warranty Cost} = 0.18 \times 140\]
Multiplying these values:
\[0.18 \times 140 = 25.20\]
Thus, the cost of the warranty is \(\$25.20\).
- Conclusion and Selection
We have calculated the warranty cost to be \(\$25.20\). Comparing this result with the provided options:
A\(\$7.78\)
B\(\$25.20\)
C\(\$18.72\)
D\(\$12.86\)
The calculated value matches option B. The correct answer is B.
Examples
Calculating percentages is a fundamental skill in everyday financial transactions. For example, when purchasing electronics or appliances, stores often offer extended warranties as a percentage of the total item cost. By knowing how to calculate this, you can quickly determine the final cost of your purchase and make informed budgeting decisions. Understanding these calculations helps in evaluating deals, calculating taxes, and managing personal expenses effectively.