Question

Which event will have the greatest impact (positive or negative) on one's net worth after one month?

a. buy a used car at market value for $15,000
b. buy a new car at market value for $15,000. car depreciates 20% upon transfer of ownership.
c. none of these events will impact the net worth of an individual
d. lease a $15,000 car on a 3-year lease. the monthly payment is $199 and all lease payments are required in the lease.

Answer 1

Based on the given situations above, the event that will most likely create the biggest impact on one's net worth after a month is purchasing a car worth $15,000 of market value, and this car depreciates 20% of its value upon transfer of ownership. This impact is considered highly negative because of the large amount of depreciation.