Nere No Spacing Hoa T H 1 Chapter 9 Homework 1. Based on the following data, would you recommend buying or renting? Rental Costs Buying Costs Annual rent $7500 Annual mortgage payments $9800 ($9575 is interest) Insurance $145 Property taxes $1780 Security deposit $650 Insurance/maintenance $1050 Down payment/closing costs $4500 Growth in equity $225 Estimated annual appreciation $1700 Assume an after-tax savings interest rate of 3% and a tax rate of 24%. Comment on a non-monetary consideration that would influence your decision to choose the more expensive alternative since buying and renting have similar after-tax net costs? 2. Based on Exhibit 9-9, what would be the monthly mortgage payments for each of the following situations? a. $40,000, 15-year loan at 4.0% b. 876,000, 30-year loan at 4.75%