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Principles of Financial Planning

Question 7 • Personal Finance - EL3403

The most expensive overall option is to use to purchase the item.

Answer
A
cash
B
an installment plan
C
a rent-to-own program

Explanation

A rent-to-own program usually has the highest overall cost because payments continue over time and the total paid often exceeds the item’s cash price. Paying cash avoids financing costs, while an installment plan may add interest but is generally less expensive than rent-to-own. The correct choice is rent-to-own program.

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