QUESTION IMAGE
Question
what is an alternative payment method that typically involves high interest rates and may result in higher overall costs?
rent - to - own
debit card
cash
electronic funds transfer
Rent - to - own agreements often have high - interest rates. The structure of rent - to - own means that over the course of the agreement, the total amount paid (including rent and the eventual purchase price) can be much higher than the cash value of the item. Debit cards, cash, and electronic funds transfer (EFT) do not typically involve interest charges in the context of a payment method for goods or services in the same way as rent - to - own. Debit cards use existing funds, cash is a direct payment, and EFT is a transfer of funds from one account to another without the added cost of interest for the payment method itself.
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rent - to - own