jeri and fran work together and make the same amount of money. jeri owns her house, on which she has a…

jeri and fran work together and make the same amount of money. jeri owns her house, on which she has a mortgage, while fran rents. neither is able to save money over the next five years, who is likely to have a higher net worth at that time? a. they both will be worth the same amount of money because neither can put money away. b. fran because she can deduct the rent that she pays from her taxes. c. fran because monthly rent expenses are much less expensive than owning a home. d. jeri because part of her monthly mortgage payment will increase her equity.

jeri and fran work together and make the same amount of money. jeri owns her house, on which she has a mortgage, while fran rents. neither is able to save money over the next five years, who is likely to have a higher net worth at that time? a. they both will be worth the same amount of money because neither can put money away. b. fran because she can deduct the rent that she pays from her taxes. c. fran because monthly rent expenses are much less expensive than owning a home. d. jeri because part of her monthly mortgage payment will increase her equity.

Answer

Brief Explanations:

When making mortgage payments, a portion goes towards principal, which increases home - owner's equity. Equity is part of net worth. Renters don't build equity in this way. So, Jeris, who has a mortgage, is likely to have a higher net worth as her equity grows over time.

Answer:

D. Jeris because part of her monthly mortgage payment will increase her equity.