7
QuizMultiple Choice

Saving and Making Financial Decisions — Test

Question 7 • Personal Finance

Which financing option has the highest overall costs?

Answer
A
installment
B
cash
C
credit card
D
rent to own

Explanation

Rent-to-own arrangements generally have the highest overall cost because payments include financing and rental charges, and the total paid can greatly exceed the item's cash price. Paying cash avoids borrowing costs, while installment plans and credit cards typically have lower total costs than rent-to-own.

AI-written and checked against the verified answer.

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