You purchased a new smart-phone. The cost to you is $39.95 per month for 2 years. Warranty coverage is $12.99 per month. What is the total cost of your phone with the warranty after two years?

The total cost of the phone is $1,270.56

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

where

Firstly, the cost of phone for 2 years is computed as:

Cost of phone = (For first year) Per month Cost * 12 months + (For second year) Per month Cost * 12 months

= $39.95 * 12 + $39.95 * 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 * 12 months + (For second year) Per month Cost * 12 months

= $12.99 * 12 + $12.99 * 12

= 155.88 + $155.88

= $311.76

Therefore, the total cost would be:

Total cost = $958. 8 + $311.76

= $1,270.56