To determine the best payment option for each item, we need to compare the total costs associated with the available payment options: rent-to-own, installment plan, and cash price.
### Laptop:
1. Rent-to-own payments:
- Monthly payment: [tex]$150
- Duration: 12 months
- Total cost: \( 150 \times 12 = \$[/tex]1800 \)
2. Installment plan:
- Monthly payment: [tex]$100.83
- Duration: 12 months
- Total cost: \( 100.83 \times 12 = \$[/tex]1209.96 \)
3. Cash price:
- Total cost: \[tex]$1000
Comparing these costs, we get:
- Rent-to-own: \$[/tex]1800
- Installment: \[tex]$1209.96
- Cash: \$[/tex]1000
The best payment option for the laptop is the one with the lowest total cost, which is paying cash (total \[tex]$1000).
### Refrigerator:
1. Rent-to-own payments:
- Monthly payment: $[/tex]140
- Duration: 12 months
- Total cost: [tex]\( 140 \times 12 = \$1680 \)[/tex]
2. Installment plan:
- Monthly payment: [tex]$80.67
- Duration: 12 months
- Total cost: \( 80.67 \times 12 = \$[/tex]968.04 \)
3. Cash price:
- Total cost: \[tex]$800
Comparing these costs, we get:
- Rent-to-own: \$[/tex]1680
- Installment: \[tex]$968.04
- Cash: \$[/tex]800
Similarly, for the refrigerator, the payment option with the lowest total cost is paying cash (total \$800).
Therefore, the best payment option for both the laptop and the refrigerator is to save up and pay cash.
