# You have just started your first job and you want to have the basic appliances (fridge, washer, dryer, etc.) in your apartment. You face the…

You have just started your first job and you want to have the basic appliances (fridge, washer, dryer, etc.) in your apartment. You face the following choices: (i) Purchase all appliances at the store using a bank loan. There is no down payment as the bank can take your appliances if you default on the loan. The loan is at the annual market rate of 9%, and the loan amount is $6,100 to be repaid monthly over 4 years. (ii) Rent-to-buy from the same store. The monthly rental is $135 for 48 months and then you pay $1,000 to own all the appliances. What is the net cost today of the cheapest option? (Enter just the number in dollars without the $ sign or a comma and round off decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.)