To determine which payment option results in the lowest possible price, let's analyze the total costs for each payment method for both the laptop and the refrigerator.
### Laptop Computer
1. Rent-to-Own Payments:
- Monthly payment: [tex]$150
- Duration: 12 months
- Total cost: \( 150 \, \text{dollars/month} \times 12 \, \text{months} = 1800 \, \text{dollars} \)
2. Installment Plan:
- Monthly payment: $[/tex]100.83
- Duration: 12 months
- Total cost: [tex]\( 100.83 \, \text{dollars/month} \times 12 \, \text{months} = 1209.96 \, \text{dollars} \)[/tex]
3. Cash Price:
- Immediate payment: [tex]$1000
### 18.3 CF Refrigerator
1. Rent-to-Own Payments:
- Monthly payment: $[/tex]140
- Duration: 12 months
- Total cost: [tex]\( 140 \, \text{dollars/month} \times 12 \, \text{months} = 1680 \, \text{dollars} \)[/tex]
2. Installment Plan:
- Monthly payment: [tex]$80.67
- Duration: 12 months
- Total cost: \( 80.67 \, \text{dollars/month} \times 12 \, \text{months} = 968.04 \, \text{dollars} \)
3. Cash Price:
- Immediate payment: $[/tex]800
### Summary of Costs
- Laptop Computer:
- Rent-to-Own: [tex]$1800
- Installment: $[/tex]1209.96
- Cash: [tex]$1000
- Refrigerator:
- Rent-to-Own: $[/tex]1680
- Installment: [tex]$968.04
- Cash: $[/tex]800
### Conclusion
The consumer should choose to pay cash if their goal is to pay the lowest possible price. This is because:
- For the laptop, the cash price of [tex]$1000 is significantly lower than the rent-to-own and installment plans.
- For the refrigerator, the cash price of $[/tex]800 is also the lowest compared to other payment methods.
Thus, a consumer would choose to pay cash to pay the lowest possible price.
