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Money and Mobility
 When you move, you may find that it’s too costly to
transport all your appliances. For example, if a TV already
is on its last legs and you’re at the weight limit,
you may choose to give it to a charity rather than pay
to have it shipped. After you move, you may be tempted
to rent a new TV from a rent-to-own store. The weekly rate
seems so affordable and, in time, you will own the TV. But
renting to own is actually very expensive.
Let’s say you see a TV you want at an electronics store
and it costs $400. You don’t have that much cash and
you don’t want to put it on a credit card. Instead,
you agree to a rent-to-own plan for the same TV. For about
$15 a week, you’ll have the TV you want, and in 65 weeks,
you’ll own it. Here’s what your $400 TV could
cost you:
| Weekly rental |
$15 x 65 weeks |
= |
$975.00 |
| 5% sales tax |
75¢ x 65 weeks |
= |
$48.75 |
| Possible delivery fee |
$10 (once) |
= |
$10.00 |
|
| Total cost of rent-to-own TV |
= |
$1,033.75 |
Your $400 TV could cost your family $1,033.75. A better option would be to buy a used TV or save until you have the $400.
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