1. The problem states that a component costs 0.05 each and the manufacturer needs 2,000 components per month. 2. First, calculate the monthly cost by multiplying the cost per component by the number of components needed per month: $$\text{Monthly cost} = 0.05 \times 2000 = 100$$ 3. Next, calculate the yearly cost by multiplying the monthly cost by 12 (months in a year): $$\text{Yearly cost} = 100 \times 12 = 1200$$ 4. Therefore, the manufacturer will pay 1200 over the course of a year to purchase the components each month.