Rent-to-Own Cost Calculations

The video tutorial explains a scenario where a person decides to buy a new TV. The TV costs $520 with taxes for a one-time purchase. Alternatively, the store offers a rent-to-own option at $27 per month for 2 years. The tutorial calculates the total cost of the rent-to-own option, which amounts to $648, and compares it to the one-time purchase cost. It concludes that the rent-to-own option costs $128 more than buying the TV outright.

What is the one-time purchase price of the TV?

• $500

• $560

• $540

• $520

How many months are involved in the rent-to-own option?

• 24 months

• 30 months

• 18 months

• 12 months

What is the monthly payment for the rent-to-own option?

• $25

• $27

• $35

• $30

What is the first step in multiplying 27 by 24?

• Multiply 2 by 2

• Multiply 4 by 2

• Multiply 2 by 7

• Multiply 4 by 7

What is the total cost of the rent-to-own option?

• $670

• $648

• $700

• $620

How much more does the rent-to-own option cost compared to the one-time purchase?

• $120

• $150

• $100

• $128

What is the final step in calculating the cost difference?

• Multiply 520 by 648

• Subtract 520 from 648

• Add 520 to 648

• Divide 648 by 520