\begin{tabular}{l} HOME SOLAR \ \hline OPTION 1: RENT-TO-OWN \ Pay for 7 years at R1 $$ 549 \mathrm{p} / \mathrm{m} $$ \ Additional costs: \ R782 initiation fee \ Buy-out after rental period R7 820 \ \hline\end{tabular}

Question

UpStudy AI · Accepted Answer

Certainly! Here's a clear breakdown of **Option 1: Rent-to-Own** for a home solar system based on the information you provided:

---

### **HOME SOLAR**

---

#### **OPTION 1: RENT-TO-OWN**

- **Monthly Payment:**
  - **Duration:** 7 years
  - **Amount:** R1,549 per month

- **Additional Costs:**
  - **Initiation Fee:** R782

- **Buy-Out Option:**
  - **Amount After Rental Period:** R7,820

---

### **Summary**

- **Total Duration:** 7 years
- **Total Monthly Payments:** R1,549 * 84 months = R129,916
- **Total Additional Costs:** R782 (initiation fee) + R7,820 (buy-out) = R8,602
- ****# **Total Cost Over 7 Years:** R129,916 + R8,602 = **R138,518**

### **What is Rent-to-Own?**

Rent-to-own agreements allow you to use a solar system from the outset without the full upfront cost. Over the rental period, you make monthly payments towards ownership. At the end of the term, you have the option to purchase the system by paying the buy-out amount.

### **Benefits:**

- **Lower Initial Investment:** Spread the cost over several years.
- **Flexibility:** Option to buy the system after the rental period.
- **Maintenance:** Often includes maintenance as part of the agreement.

### **Considerations:**

- **Total Cost:** Ensure that the total amount paid over time is favorable compared to purchasing outright.
- **Ownership Terms:** Understand the terms for ownership transfer and any obligations during the rental period.
- **Interest Rates:** Clarify if any interest is applied to the payments.

---

If you're considering this option, it's a good idea to compare it with other financing methods such as purchasing with a loan, leasing, or outright buying to determine which best fits your financial situation and long-term energy goals.

Feel free to share more details or ask if you need information on other options!
**Option 1: Rent-to-Own** - **Monthly Payment:** R1,549 per month for 7 years - **Additional Costs:** R782 initiation fee - **Buy-Out After 7 Years:** R7,820 **Total Cost Over 7 Years:** R138,518

\begin{tabular}{l} HOME SOLAR \\ \hline OPTION 1: RENT-TO-OWN \\ Pay for 7 years at R1 \( 549 \mathrm{p} / \mathrm{m} \) \\ Additional costs: \\ R782 initiation fee \\ Buy-out after rental period R7 820 \\ \hline\end{tabular}

Solución de tutoría real

Responder

Solución

Bonus Knowledge

preguntas relacionadas

Latest Economics Questions