Question

A)Why does the fact that she might not like living in California make someone think renting a home is better than buying one?
(1 point)
She cannot immediately come up with the large down payment required to buy a house.
She expects mortgage rates to go down in the next year or two. (That has nothing to do with whether she likes
She does not want to pay property taxes to support a place she might not like living in.
If she decides to move, she will not have to deal with selling her home.
A)Which of the following is a disadvantage of renting over buying a home?(1 point)
With each new lease, your rent can go up.
You must also pay thousands of dollars for things such as property taxes.
You will have fewer hassles when you decide to move.
If something breaks, you have to fix it or pay to have it fixed.
A)Which of the following is an advantage of leasing over buying a car?(1 point)
Leasing is nearly always less expensive than buying.
You are always driving a new car, which has the latest safety features.
You can sell the car whenever you want.
When the lease ends, you do not have a car.
A)John needs a new dishwasher and buys it from a store because they had a financing special that offered no interest charges
12 months. What will the store do if he doesn’t pay the entire amount off in that time?(1 point)
It will begin assessing interest on whatever remains to be paid at that point.
It will repossess the dishwasher.
It will cancel the service contract on the dishwasher.
It will charge him all the interest that would have accrued over the year.
2/7/25, 7:48 PM Personal Finance: Benefits of Owning v. Renting

Question 5
A)José wants to buy a new large screen TV. The electronics store has a special on the model he wants and offers same-day de
if he uses his store rewards card. An online retailer is offering the same model, and if he uses their credit card, he can get 10%
Why might José have decided to buy from the electronics store when the same TV is available for less money from the online
retailer?(1 point)
The one from the online retailer was of higher quality.
José likes paying extra money.
He was worried that the TV would get lost in the mail.
He wants to get the rewards, and he did not want to open another credi

Answer 1

Let's go through each of your questions one by one:

1. **Why does the fact that she might not like living in California make someone think renting a home is better than buying one?**
- **Correct answer:** If she decides to move, she will not have to deal with selling her home.
- This option reflects the flexibility renting provides compared to buying, especially if she is unsure about her long-term happiness in California.

2. **Which of the following is a disadvantage of renting over buying a home?**
- **Correct answer:** With each new lease, your rent can go up.
- This highlights the uncertainty associated with renting since rent can increase, whereas a mortgage payment remains fixed (assuming a fixed-rate mortgage).

3. **Which of the following is an advantage of leasing over buying a car?**
- **Correct answer:** You are always driving a new car, which has the latest safety features.
- This reflects the appeal of leasing, where you frequently get access to newer vehicles.

4. **What will the store do if John doesn’t pay the entire amount off in that time?**
- **Correct answer:** It will begin assessing interest on whatever remains to be paid at that point.
- Many financing deals include a clause that allows interest to be charged if the balance is not paid off within the promotional period.

5. **Why might José have decided to buy from the electronics store when the same TV is available for less money from the online retailer?**
- **Correct answer:** He was worried that the TV would get lost in the mail.
- This reason indicates a concern for the reliability of receiving the product, which might influence his decision despite a better price elsewhere.

Let me know if you have any more questions!