Try the fastest way to create flashcards
Question

# A friend sees an ad that would allow him to rent a large screen TV for $20 a week, for 152 weeks. At the end of the renta l period, he would own the TV. He could buy the same TV at the store for$2,000 . He thinks the rent-to-own price is a good buy. You don't . What are two comparisons between renting and buying the TV that you can make to support your position?

Solution

Verified

Renting to own costs a total of $20$\times$152 = \3,040. That is about 50\% more than the price at the store. \\\\($$\dfrac{\3,000 - \2,000}{\2,000} =$$\dfrac{\1,000}{\2,000} =$\dfrac{1}{2}\$ = 50%)

## Recommended textbook solutions

#### Statistical Techniques in Business and Economics

15th EditionISBN: 9780073401805 (11 more)Douglas A. Lind, Samuel A. Wathen, William G. Marchal
1,236 solutions

17th EditionISBN: 9780538448734 (1 more)Mary Hansen
3,762 solutions

#### Financial Algebra

1st EditionISBN: 9780538449670Richard Sgroi, Robert Gerver
2,606 solutions

#### Financial Algebra: Advanced Algebra with Financial Applications

2nd EditionISBN: 9781337271790Richard Sgroi, Robert Gerver
3,016 solutions