Question

Margaret wants a television but does not want to take cash out of her savings. Based on the chart, which is her next best option in terms of price?

1) Paying the $1,450 up front
2) Making rent-to-own payments
3) Taking out an installment plan
4) Renting to own and returning the item mid-contract

Answer 1

The correct answer is option 1. The next best option for purchasing a television in terms of price cannot be determined without specific details of the payment options. A detailed budget can help identify potential savings and could allow for an outright purchase sooner.

Step-by-step explanation:

Based on the information provided, there are multiple options for acquiring a new television without taking cash out of savings. Without the specific details of each payment option (upfront payment, rent-to-own, installment plan, or renting to own with mid-contract return), we cannot definitively say which is the next best option in terms of price after paying the $1,450 upfront.

Generally, paying upfront tends to be cheaper in the long run compared to rent-to-own or installment plans which often include interest or additional fees. Renting to own and returning the item mid-contract could result in penalties or lost payments. A detailed budget could reveal if there are areas of potential savings that could help in purchasing the television outright more quickly. A budget is a powerful tool to manage finances and make informed decisions.