the chart shows pricing and payment options for two big - ticket items. financing options for household…

the chart shows pricing and payment options for two big - ticket items. financing options for household items which payment option would be best for the laptop and for the refrigerator? item rent - to - own payments installment plan cash price 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 rent - to - own; installment installment; rent - to - own rent - to - own; rent - to - own save up and pay cash
Answer
Explanation:
Step1: Calculate total cost of rent - to - own for laptop
Multiply monthly rent - to - own payment by number of months. For laptop, $150\times12 = 1800$.
Step2: Calculate total cost of installment plan for laptop
Multiply monthly installment payment by number of months. For laptop, $100.83\times12=1209.96$.
Step3: Compare laptop payment options
The cash price is $1000$, the installment plan total is $1209.96$ and rent - to - own is $1800$. So, the best option for laptop is to save up and pay cash.
Step4: Calculate total cost of rent - to - own for refrigerator
Multiply monthly rent - to - own payment by number of months. For refrigerator, $140\times12 = 1680$.
Step5: Calculate total cost of installment plan for refrigerator
Multiply monthly installment payment by number of months. For refrigerator, $80.67\times12 = 968.04$.
Step6: Compare refrigerator payment options
The cash price is $800$, the installment plan total is $968.04$ and rent - to - own is $1680$. So, the best option for refrigerator is to save up and pay cash.
Answer:
save up and pay cash; save up and pay cash