the chart shows pricing and payment options for two big - ticket items. which payment option would be best…

the chart shows pricing and payment options for two big - ticket items. which payment option would be best for the laptop and for the refrigerator? financing options for household items\n| item | rent - to - own payments | installment plan | cash price |\n| ---- | ---- | ---- | ---- |\n| laptop computer | $150 a month for 12 months | $100.83 a month for 12 months | $1,000 |\n| 18.3 cf refrigerator | $140 a month for 12 months | $80.67 a month for 12 months | $800 |\nrent - to - own; installment\ninstallment; rent - to - own\nrent - to - own; rent - to - own\nsave up and pay cash
Answer
Explanation:
Step1: Calculate rent - to - own cost for laptop
The rent - to - own payment for the laptop is $150 per month for 12 months. So the total cost is $150\times12 = 1800$.
Step2: Calculate installment cost for laptop
The installment payment for the laptop is $100.83 per month for 12 months. So the total cost is $100.83\times12=1209.96$.
Step3: Compare laptop payment options
The cash price of the laptop is $1000. Since $1000<1209.96 < 1800$, paying cash is the best option for the laptop if possible.
Step4: Calculate rent - to - own cost for refrigerator
The rent - to - own payment for the refrigerator is $140 per month for 12 months. So the total cost is $140\times12 = 1680$.
Step5: Calculate installment cost for refrigerator
The installment payment for the refrigerator is $80.67 per month for 12 months. So the total cost is $80.67\times12 = 968.04$.
Step6: Compare refrigerator payment options
The cash price of the refrigerator is $800. Since $800<968.04<1680$, paying cash is the best option for the refrigerator if possible.
Answer:
save up and pay cash