Imagine you want to buy a TV that costs $300, but you don’t…
Imagine you want to buy a TV that costs $300, but you don’t have all the needed cash on hand. You visit a rent-to-own store. They will let you have the TV today for only $100. You will then rent it for the next six months for $100 per month. Once you have made all of the payments, the TV is yours. How much will the TV actually cost you (assuming you make all of your payments on-time)?