the chart shows pricing and payment options for three big items.\n\n| item | rent-to-own payments |…

the chart shows pricing and payment options for three big items.\n\n| item | rent-to-own payments | installment plan | retail price |\n| :--- | :--- | :--- | :--- |\n| 50\ plasma television | $65 per week for one year | $146 per month for 12 months | $1,450 |\n| laptop computer | $30 per week for one year | $100 per month for 12 months | $1,000 |\n| refrigerator | $28 per week for one year | $80 per month for 12 months | $800 |\n\nmargaret wants a television but does not want to take cash out of her savings. based on the chart, which is her next best option in terms of price?\n\na. paying the $1,450 up front\nb. making rent-to-own payments\nc. taking out an installment plan\nd. renting to own and returning the item mid-contract

the chart shows pricing and payment options for three big items.\n\n| item | rent-to-own payments | installment plan | retail price |\n| :--- | :--- | :--- | :--- |\n| 50\ plasma television | $65 per week for one year | $146 per month for 12 months | $1,450 |\n| laptop computer | $30 per week for one year | $100 per month for 12 months | $1,000 |\n| refrigerator | $28 per week for one year | $80 per month for 12 months | $800 |\n\nmargaret wants a television but does not want to take cash out of her savings. based on the chart, which is her next best option in terms of price?\n\na. paying the $1,450 up front\nb. making rent-to-own payments\nc. taking out an installment plan\nd. renting to own and returning the item mid-contract

Answer

Explanation:

Step1: Identify constraints and target item

Margaret wants the television but refuses to pay cash upfront (Retail price).

Step2: Calculate total rent-to-own cost

Multiply weekly payment by weeks in a year. $$ $65 \times 52 = $3,380 $$

Step3: Calculate total installment plan cost

Multiply monthly payment by number of months. $$ $146 \times 12 = $1,752 $$

Step4: Compare non-cash options

Compare $$3,380$ (Rent-to-own) and $$1,752$ (Installment). The installment plan is significantly cheaper.

Answer:

taking out an installment plan