6. (2 pts) What advice would you give someone considering using a rent-to-own store?

Estimated Rate: 49.48% 3. (2 pt) Use simple interest to show what the estimated rate is, figured on the BIG BOX COST. Hint: you are paying 24*$120 for something that would cost you $1097 cash. Fill in 1, P, and t in the simple interest formula and solve for r. Change the rate to a percent. Work: 24 months and the monthly payment is $120. Principle amount is P=1097. I= total of payment - principle I= 24*120-1097 I= 2880-1097 I= $1783 P= 1097 T= 24 Months = 2 years R is what we are solving for R= ! = 1783 PT 2194 R= 0.81267= 81.267% Estimated Rate: R= 81.267% 4. (1 pts) Many big box stores offer "Same as Cash for 12 Months". What is the implied interest rate here? What is the "catch", if there is one? Do some research if needed. 5. (1 pts) Why would a consumer be willing to pay the very high interest rate with this rent-to-own model? Do some research if needed. 6. (2 pts) What advice would you give someone considering using a rent-to-own store