To determine the best decision for Joshua, we need to compare the costs associated with the available options. Here’s a detailed breakdown of each option:
1. Rent a computer for three weeks:
- The cost to rent a computer is [tex]$30 per week.
- For three weeks, the total cost would be:
\[ 30 \, \text{dollars/week} \times 3 \, \text{weeks} = 90 \, \text{dollars} \]
2. Pay cash for a new computer:
- The retail price of a new computer is $[/tex]1,000.
- The total cost in this case is:
[tex]\[ 1,000 \, \text{dollars} \][/tex]
3. Use a rent-to-own program to buy a new computer:
- The cost to rent a computer with an option to own it by the end of one year is [tex]$30 per week.
- For one year (52 weeks), the total cost would be:
\[ 30 \, \text{dollars/week} \times 52 \, \text{weeks} = 1,560 \, \text{dollars} \]
4. Use an installment plan to buy a new computer:
- The cost for the installment plan is $[/tex]100 per month.
- For one year (12 months), the total cost would be:
[tex]\[ 100 \, \text{dollars/month} \times 12 \, \text{months} = 1,200 \, \text{dollars} \][/tex]
Now, let’s summarize the costs:
1. Rent a computer for three weeks: [tex]$90
2. Pay cash for a new computer: $[/tex]1,000
3. Use a rent-to-own program: [tex]$1,560
4. Use an installment plan: $[/tex]1,200
To spend the least amount of money, Joshua should choose the option with the lowest cost. Thus, the best decision for Joshua is to rent a computer for three weeks, which costs $90.
