Short Answer 
Maria should recognize that using a rent-to-own program for a television would cost her $1,404, significantly higher than the retail price of $480, resulting in an extra $924. Evaluating her savings plan, she can buy the TV by saving $200 monthly, making a more financially sound decision by waiting and avoiding unnecessary expenses.
Step 1: Understand the Financial Impact
Maria needs to recognize the additional cost of using a rent-to-own program. By opting for this method, she would end up paying a total of $1,404 for the television, which is significantly higher than its retail price of $480. This leads to an additional expenditure of $924. Understanding this difference is crucial for her financial decision-making.
Step 2: Evaluate Savings Timeframe
If Maria chooses to save for the television instead of using the rent-to-own option, she can pay the full retail price after a few months. Specifically, with her monthly budget of $200, she can purchase a refrigerator costing $800 in 4 months by saving $200 each month. It’s important for her to consider how long it will take to save up for the television.
Step 3: Make an Informed Decision
In light of the costs associated with the rent-to-own program and the time required to save, Maria should consider waiting to pay cash for her purchase. The advantages of patience include avoiding unnecessary expenses and ensuring she only pays the retail price. By comparing these options, she can make a more financially sound decision and avoid the higher costs of immediate gratification.