Question

read the scenario.
brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. he is looking to purchase both a car and a place to live, and he is very interested in building up equity and credit.
which of the following illustrates the most economically choice for brad?
○ buying both a car and a home
○ leasing both a car and home
○ buying a car and leasing a home
○ leasing a car and buying a home

Explanation:

To determine the most economical choice for Brad, we analyze his situation: he has a steady income, plans to live long - term, and wants to build equity and credit.

• Buying a home helps build equity (as he pays down the mortgage, he owns more of the home) and can positively impact credit over time. Leasing a car can be more economical in the short - term for a car (lower monthly payments, less maintenance hassle, and he can get a new car at the end of the lease). Buying a car would mean he has to deal with depreciation and higher upfront/long - term maintenance costs if he wants to keep it, while leasing avoids that. Buying both a car and a home would have higher costs (especially for the car in the long - term). Leasing both a car and home doesn't build equity for the home. Buying a car and leasing a home doesn't build home equity. So leasing a car (to save on car - related costs in the long - term while still having a vehicle) and buying a home (to build equity) is the best choice.

Answer:

D. leasing a car and buying a home