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The chart shows pricing and payment options for two big-ticket items.

Financing Options for Household Items

\begin{tabular}{|l|l|l|l|}
\hline
Item & \begin{tabular}{l} Rent-to-own \\ payments \end{tabular} & \begin{tabular}{l} Installment \\ plan \end{tabular} & \begin{tabular}{c} Cash \\ price \end{tabular} \\
\hline
\begin{tabular}{l} Laptop \\ computer \end{tabular} & \begin{tabular}{l} [tex]$\$[/tex]150[tex]$ a \\ month for 12 \\ months \end{tabular} & \begin{tabular}{l} $[/tex]\[tex]$100.83$[/tex] a \\ month for 12 \\ months \end{tabular} & [tex]$\$[/tex]1,000[tex]$ \\
\hline
\begin{tabular}{l} 183 CF \\ refrigerator \end{tabular} & \begin{tabular}{l} $[/tex]\[tex]$140$[/tex] a \\ month for 12 \\ months \end{tabular} & \begin{tabular}{l} [tex]$\$[/tex]80.67[tex]$ a \\ month for 12 \\ months \end{tabular} & $[/tex]\[tex]$800$[/tex] \\
\hline
\end{tabular}

Which payment option would be best for the laptop and for the refrigerator?

A. rent-to-own; installment
B. installment; rent-to-own
C. rent-to-own; rent-to-own
D. save up and pay cash



Answer :

GinnyAnswer
To determine the best payment option for each item, we need to compare the total costs associated with the available payment options: rent-to-own, installment plan, and cash price.

### Laptop:
1. Rent-to-own payments:
- Monthly payment: [tex]$150 - Duration: 12 months - Total cost: \( 150 \times 12 = \$[/tex]1800 \)

2. Installment plan:
- Monthly payment: [tex]$100.83 - Duration: 12 months - Total cost: \( 100.83 \times 12 = \$[/tex]1209.96 \)

3. Cash price:
- Total cost: \[tex]$1000 Comparing these costs, we get: - Rent-to-own: \$[/tex]1800
- Installment: \[tex]$1209.96 - Cash: \$[/tex]1000

The best payment option for the laptop is the one with the lowest total cost, which is paying cash (total \[tex]$1000). ### Refrigerator: 1. Rent-to-own payments: - Monthly payment: $[/tex]140
- Duration: 12 months
- Total cost: [tex]\( 140 \times 12 = \$1680 \)[/tex]

2. Installment plan:
- Monthly payment: [tex]$80.67 - Duration: 12 months - Total cost: \( 80.67 \times 12 = \$[/tex]968.04 \)

3. Cash price:
- Total cost: \[tex]$800 Comparing these costs, we get: - Rent-to-own: \$[/tex]1680
- Installment: \[tex]$968.04 - Cash: \$[/tex]800

Similarly, for the refrigerator, the payment option with the lowest total cost is paying cash (total \$800).

Therefore, the best payment option for both the laptop and the refrigerator is to save up and pay cash.

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