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the chart shows pricing and payment options for two big items. | item |…

Question

the chart shows pricing and payment options for two big items.

itemrent - to - own paymentsinstallment plancash price
18.3 cf refrigerator$140 a month for 12 months$80.67 a month for 12 months$800

which is the best option for people who need the items immediately but cannot pay cash now?

  • choosing installment plans for both items
  • choosing rent - to - own plans for both items
  • saving up enough money before buying either item
  • splitting the items between installment and rent - to - own plans

Explanation:

Brief Explanations
  1. Analyze the "need immediately" and "cannot pay cash now" condition: Saving up (option 3) is out as it delays ownership. Rent - to - own (option 2) and splitting (option 4) or rent - to - own vs installment: We calculate total cost for each option.
  • For installment plan (option 1):
  • Laptop: $100.83\times12 = 1209.96$
  • Refrigerator: $80.67\times12 = 968.04$
  • Total: $1209.96 + 968.04=2178$
  • For rent - to - own (option 2):
  • Laptop: $150\times12 = 1800$
  • Refrigerator: $140\times12 = 1680$
  • Total: $1800 + 1680 = 3480$
  • Option 4 (splitting) will have a total cost between option 1 and 2. Since installment plan has lower total cost than rent - to - own and allows immediate use (as it's a way to get the item now with monthly payments), and we need the items immediately, choosing installment plans for both is better.

Answer:

choosing installment plans for both items