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 sound 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:

Building equity requires owning an asset, as leasing does not build equity. Buying a home builds equity over time, while leasing a car avoids long-term ownership costs for a depreciating asset, making this the most balanced financially sound choice for someone wanting to build equity and credit.

Answer:

D. leasing a car and buying a home