Question: Based on the following data, would you recommend buying or renting? RENTAL COST Annual rent $8,330 Insurance $240 Security deposit $1,125 BUYING COST Annual mortgage

Based on the following data, would you recommend buying or renting?

RENTAL COST

Annual rent $8,330

Insurance $240

Security deposit $1,125

BUYING COST

Annual mortgage payments $10,350(10,050 is interest)

Property taxes $2,160

Down payment/closing costs $5,050

Growth in equity $300

Insurance/maintenance $2,000

Estimated annual appreciation $2,650

Assume an after-tax savings interest rate of 8 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.)

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