59. Some stores offer a rent-to-own plan. The customer makes a down payment, rec

Question

59. Some stores offer a rent-to-own plan. The customer makes a down payment, receives the merchandise at time of purchase, and makes monthly payments. The sum of the monthly payments is lower than the cost of the item. When the last payment is made, customers make a choice. They can purchase the item and apply their payments towards the cost. They can return the item, which means they rented it for a certain period of months. (2 points) Sharon bought a $2,100 high-definition television set CHDTV) ona six-month rent-to-own plan. The down payment was 10%, what was the dollar value of the down payment?-_-- a. b. Her monthly payments were $75 per month. If she decides not to buy the HDTV after the six months, what was her cost to rent it?

Explanation / Answer

a. Sharon bought the $2,100 HDTV on a six-month rent-to-own plan. Downpayment was 10%.

So, dollar value of downpayment = 10% * $2,100 = $210

b. Monthly payments = $75

She makes payments for 6 months.

Total payments = 6 * $75 = $450

Total Cost of renting = Total monthly payments + Downpayments = $210 + $450 = $660

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