Frank is facing a choice. He wants both a newer car and to spend a month in Europe; each costs $6,000. He has decided he will use credit now for one of his options and save his money for three years to pay for the other.
Option 1: Use credit now to purchase a newer car and save for a vacation in three years.
Option 2: Use credit now to pay for a European vacation and save to purchase a newer car in three years.
Explain to Frank how each option will affect his net worth and then make a recommendation for which option he should choose.