17 alue 2.50 points Problem 7-1 (LO71) Based on the following data, would you recommend buying or renting? Rental Costs Annual rent Insurance Security deposit Buying Costs S 8,130 Annual mortgage payments $ 220 Property taxes 1,400 Down payment/closing costs $ 10,550 (9,950 is interest) $ 2,080 $ 5,100 Growth in equity Insurance/maintenance 600 $ 1,800 $ 2,450 Estimated annual appreciation Assume an after-tax savings interest rate of 9 percent and a tax rate of 26 percent. Assume this individual has other tax deductions that exceed the standard deduction amount. a. Calculate total rental cost and total buying cost. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Rental cost Buying cost b. Would you recommend buying or renting? O Buying O Renting