Question

comparing the cost of ownership
consumers would pay if used the rent-to-own plan for the computer.
for all of the items, using is the cheapest option
the most expensive option is a rent-to-own program to purchase the item.

item

rent-to-own payments

installment plan

cash price

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laptop computer

$150 a month for 12 months

$100.83 a month for 12 months

$1,000

18.3 cf refrigerator

$140 a month for 12 months

$80.67 a month for 12 months

$800

Explanation:

Step1: Calculate total rent-to-own cost for laptop

$\$150 \times 12 = \$1,800$

Step2: Calculate total installment cost for laptop

$\$100.83 \times 12 = \$1,209.96$

Step3: Calculate total rent-to-own cost for refrigerator

$\$140 \times 12 = \$1,680$

Step4: Calculate total installment cost for refrigerator

$\$80.67 \times 12 = \$968.04$

Step5: Compare all costs for each item

Laptop: $\$1,000$ (cash) < $\$1,209.96$ (installment) < $\$1,800$ (rent-to-own)
Refrigerator: $\$800$ (cash) < $\$968.04$ (installment) < $\$1,680$ (rent-to-own)

Answer:

1. Total cost to rent-to-own the laptop: $\$1,800$
2. For all items, the cheapest option is paying the cash price.
3. The most expensive option is using a rent-to-own program to purchase the item.
4. Total amount consumers would pay using rent-to-own for the computer: $\$1,800$