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?

Answer 1

Buying both a car and a home.

Answer 2

Buying a car and a home illustrates the most economically sound choice for Brad.

Since Brad has a steady job, earns a solid income, then he will be able to buy a car and a home. In other words, if Brad leases a car or home, he won’t be able to build up equity and credit

Further Explanation

A lease refers to an agreement between a lessee (user) and the lessor (owner). This implies that if Brad decides to lease a car and a home, then he would have to pay the owner for using the asset and won’t have enough to grow his asset and credit. In this case, the lessor is the legal owner of the asset and the lessee (Brad) is the user of the asset.

A lease is a contract that shows the terms and conditions that both the property owner and the person that intends to use the leased asset must comply with.

The contract allows the tenant to use the asset and also guarantees the property owner or landlord (lessor), prompt payment throughout the period the lessee will use the asset or property.

However, the contract is binding on the lessee and the lessor and both may face consequences if they fail to obey the terms of the contract.

LEARN MORE:

• Brad has a steady job, earns a solid income, and plans to live in a nearby city for the long term. brainly.com/question/8453597
• Brad has a steady job, solid income, and plans to live in a nearby city for the long term brainly.com/question/1984530

KEYWORDS:

• contract
• brad
• equity
• credit
• home
• car
• lessee
• lessor