Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

Question

Quizplus · Accepted Answer

Borrowing money to buy a car that will enable you to get a better paying job can be financially beneficial in the long run as it may lead to a higher income and career advancement. This is known as investing in oneself or one's career. Options A and D are not financially beneficial as they are purchases for personal enjoyment and do not have any potential return on investment. Option B is not financially beneficial as the interest on the loan would be an additional cost, whereas if the interest earned on savings is less than the interest paid on the loan, it would result in a net loss.

Under Which of the Following Circumstances Would It Be Financially