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 i 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 con. They can return the tem, which
means they rented it for a certain period of months
1. Sharon bought a $2,100 high-definition television set (HDTV) on a six-month rent-to-own plan. The down payment was 10%. What was the dollar value of the down payment?
b. Her monthly payments were $75 per month. If she decides not to buy the HOYTV after the six months, what was her cost to rent it?