Based on the following data, calculate the items requested:

Rental Costs Buying Costs

Annual rent $ $7,380$ Annual mortgage payments $ $9,800($$$9,575$ is interest$)$

Insurance $ $145$ Property taxes $ $1,780$

Security deposit $ $650$ Down payment$/$closing costs $ $4,500$

Growth in equity $ $225$

Insurance$/$maintenance $ $1,050$

Estimated annual appreciation $ $1,700$

Assume an after$-$tax savings interest rate of $6$ percent and a tax rate of $28$ 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

Renting

Buying