A space heater costing $235 offers an extended warranty for 15% of the purchase price. If the local repair shop will fix a space heater for $12, how many times must the space heater need repairs for the warranty to be worth the cost?

The warranty costs 15% of $235, which is $35.25. At $12 per repair, two repairs cost $24, less than the warranty, while three cost $36, more than the warranty. So the warranty becomes worth its cost after three repairs; the correct choice is “three.”

AI-written and checked against the verified answer.