Based on the following data, calculate the items requested:

Rental Costs Buying Costs

Annual rent $ $7,680$ Annual mortgage payments $ $10,400(9,725$ is interest$)$

Insurance $ $175$ Property taxes $ $1,900$

Security deposit $ $800$ Down payment$/$closing costs $ $5,100$

Growth in equity $ $675$

Insurance$/$maintenance $ $1,350$

Estimated annual appreciation $ $2,000$

Assume an after$-$tax savings interest rate of $8$ percent and a tax rate of $30$ 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.$)$

b$.$ Would you recommend buying or renting?

multiple choice

Buying

Renting