Problem 7-1 (LO7.1) Based on the following data, would you recommend buying or renting? Rental Costs Annual rent Insurance Security deposit $ 7,630 $ 170 $ 775 Buying Costs Annual mortgage payments $10,300 (9,700 is interest) Property taxes $ 1,880 Down payment/closing costs $ 5,000 Growth in equity $ 600 Insurance/maintenance $ 1,300 Estimated annual appreciation $ 1,950 Assume an after-tax savings interest rate of 7 percent and a tax rate of 32 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