Pam has just moved into a new home and wants to purchase an oven. She expects to live in this house for the foreseeable future. She has narrowed her choices down to two options. Consider the following table, which describes the prices, daily electricity costs, and lifespans of the two ovens she is considering:

Brand

Brand U

Brand V

Price

$2,250

$725

Avg. Cost/Day

$0.16

$0.28

Lifespan

24 years

8 years

Which brand will have the lower lifetime cost, and how much lower will it be?

Hints: If the product’s expected lifespans differ, assume that repurchase(s) at the same price is possible to equalize the lifespans. Remember that six of the twenty-four years will be leap years, and round all dollar values to the nearest cent.

a.

Brand U will be $1,051.92 cheaper than Brand V.

b.

Brand U will be $976.92 cheaper than Brand V.

c.

Brand V will be $75 cheaper than Brand U.

d.

Brand V will be $2109.40 cheaper than Brand U.

Please select the best answer from the choices provided

brandthat will have the lowerlifetimecost is that theBrand Uwill be $976.92cheaperthan Brand V. The correct option is B.## What is multiplication?

Multiplicationis the process of multiplying, therefore,addinga number to itself for the number oftimesstated. For example, 3 × 4 means 3 is added to itself 4 times, and vice versa for the other number.BrandU = $2,250Operationalcost = 8766 × $0.16 = $1,402.56operatingBrand V,years= (6×366) + (18×365) = 8766Operationalcost = 8766 × $0.28 = $2,454.48differencebetween the cost ofoperationand buying will be,costfor 24 years for Brand V – Total cost for 24 years for Brand Ubrandthat will have thelower lifetimecost is that the Brand U will be $976.92 cheaper thanBrand V.Multiplicationhere: