Answered

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

Financing Options for Household Items
\begin{tabular}{|l|l|l|c|}
\hline
\multicolumn{1}{|c|}{\textbf{Item}} & \textbf{Rent-to-own payments} & \textbf{Installment plan} & \textbf{Cash price} \\
\hline
\begin{tabular}{l}
Laptop \\
computer
\end{tabular} &
\begin{tabular}{l}
\[tex]$150 a \\
month for 12 \\
months
\end{tabular} &
\begin{tabular}{l}
\$[/tex]100.83 a \\
month for 12 \\
months
\end{tabular} &
\[tex]$1,000 \\
\hline
\begin{tabular}{l}
18.3 CF \\
refrigerator
\end{tabular} &
\begin{tabular}{l}
\$[/tex]140 a \\
month for 12 \\
months
\end{tabular} &
\begin{tabular}{l}
\[tex]$80.67 a \\
month for 12 \\
months
\end{tabular} &
\$[/tex]800 \\
\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
Let's determine the best payment options for both the laptop and the refrigerator based on the given numerical results.

### Laptop Computer

1. Rent-to-Own Option:
- Monthly payment: [tex]$150 - Duration: 12 months - Total cost: \(150 \times 12 = 1800\) 2. Installment Plan: - Monthly payment: $[/tex]100.83
- Duration: 12 months
- Total cost: [tex]\(100.83 \times 12 = 1209.96\)[/tex]

3. Cash Price:
- One-time payment: \[tex]$1000 When we compare the total costs: - Rent-to-Own: $[/tex]1800
- Installment: [tex]$1209.96 - Cash Price: $[/tex]1000

The lowest cost option is the cash price of [tex]$1000. Therefore, the best option for the Laptop Computer is to save up and pay cash. ### 18.3 CF Refrigerator 1. Rent-to-Own Option: - 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: \(80.67 \times 12 = 968.04\) 3. Cash Price: - One-time payment: $[/tex]800

When we compare the total costs:
- Rent-to-Own: [tex]$1680 - Installment: $[/tex]968.04
- Cash Price: [tex]$800 The lowest cost option is the cash price of $[/tex]800. Therefore, the best option for the Refrigerator is to save up and pay cash.

### Conclusion
The best payment options for both the laptop and the refrigerator are to save up and pay cash.