Question

determine whether the statement is true or false. if the statement is false, make the necessary change(s) to produce a true statement. renters can build up equity as the rent is paid each month. choose the correct answer below. a. the statement is true because paying rent builds the equity of the renter. b. the statement is false. the true statement is
enters can build up equity as the rent is paid each year.\ c. the statement is false. the true statement is
enters and homeowners can build up equity as the rent/mortgage is paid each month.\ d. the statement is false. the true statement is
enters cannot build up equity as the rent is paid each month.\

Explanation:

Equity in the context of housing refers to the ownership value a homeowner builds as they pay down their mortgage (since part of the mortgage payment goes towards principal, increasing ownership). Renters pay rent to a landlord, and this payment does not contribute to building equity for the renter (as they don't own the property). So the original statement is false. Option A is wrong as rent doesn't build renter equity. Option B's correction is incorrect because changing the time frame (month to year) doesn't make rent build equity. Option C is wrong because renters still don't build equity from rent, while homeowners build equity from mortgage payments. Option D correctly states the statement is false and provides the true correction that renters cannot build up equity as rent is paid monthly.

Answer:

D. The statement is false. The true statement is "Renters cannot build up equity as the rent is paid each month"