Question

Steve had the option to buy a new computer at the $4250.00 cash price or to rent it for $595.00 per month for 10 months. after which he will own the computer. What percentage more than the cash price would the rent option cost him?​

Answer 1

I believe it's 25% .............

Answer 2

40%

Explanation:

The cash price = $4,250

If Steve rents the computer for $595 for 10 months he would have to spend $595 x 10 = $5,950

The difference in money = 5950 - 4250 =$1700

As a percentage of the cash price this would be
1700/4250 x 100 = 40%

Answer:
Rent option is 40% more than the cash price 40%

We can verify this by noting that if there is an increase of r% in the price of an item then
Increased price = Old price + Increase

= Old price + Old price x r/100

In this case, Old price = 4250
r = 40%, r/100 = 0.04

New price = 4250 + 4250 x 0.04 = 4250(1 + 0.04) = 4250(1.04) = 5950 which tallies with given figures