introduction to college math

A 70’ inch sharp Aquos Quattron television regularly cost on average 2,500 dollars at Best Buy and Walmart. However, this television is also offered at a number of rent to own places. Since I shop at Aarons a lot I’ll focus on Aaron’s different payment options. At Aarons you can get the television for a grand total of 3,450 dollars. There is an initial delivery charge of 46.00 and the first monthly payment. Let’s go over the different price break downs.

Understand that the difference from buying the television out right at the price at Aarons is 138% markup. Here’s the break down take the 3450 and divide it by 2500 (3450/2500). This will come out to equal 1.38 this is the decimal form. Convert the decimal into a percent move the decimal place two places to the left and taa daa 138%. While this television is sold at a markup of 138% it can be paid for on various payment plans of 120 days same as cash, 12 month, 18 months and 24 months. Note the longer you decided to pay the more you’ll pay in interest.

 Interest at Aarons is 5.6% apr on a 12 month lease. This is paid on-top of the grand total price. Let’s calculate the monthly interest convert the 5.6% to its decimal form of .056 this is done by moving the decimal place to places to the right. After we convert the percentage into its decimal form we will divide it by 12. So that .056 divided by 12 (.056/12), and the answer is .0047. Take the monthly fee multiply by the monthly interest then add the monthly fee back in and that is your monthly payment.

12 months

 3450/12= 287.50

287.50*.0047= 1. 35

Monthly charge= 288.85

1st month and delivery charge=288.85+46= 334.85

Full pay out on 12 months

288.85*12= 3,466.20+46=3,512.20

After the first month you’ll have 3,177.35 to pay over 11 months of equal payments of 288.85

Interest at Aarons is 26.6% apr on a 18 month lease. This is paid on-top of the grand total price. Let’s calculate the monthly interest convert the 26.6% to its decimal form of .266 this is done by moving the decimal place to places to the right. After we convert the percentage into its decimal form we will divide it by 12. So that .056 divided by 12 (.266/12), and the answer is .0222. Take the monthly fee multiply by the monthly interest then add the monthly fee back in and that is your monthly payment.

 

18 months

 3450/18= 191.67

191.67*.0222= 4.26

Monthly charge= 195.93

1st month and delivery charge=195.93+46= 241.93

Full pay out on 18 months

195.93*18= 3,526.74

195.93*18= 3,526.74+46= 3,572.74

After the first month you’ll have to pay over 17 months of equal payments of 195.93