Problem $9-1$ Comparing Renting and Buying $[$LO$9-1]$

$\backslash$table$[[$Rental Costs,$],[$Annual rent $ $8,150,],[$Insurance $158,],[$Security deposit $1,580,],[$Buying Costs,$],[$Annual mortgage payments,$ $10,410($$$9,658$ is interest$)],[$Property taxes,$2,76$e$],[$Insurance$,$ naintenance,$1,84$e$],[$Down payment, closing costs,$4,5$e$9],[$Growth in equity,$752],[$Estimated annual appreciation,$2,6$e$3]]$

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

a$.$ Calculate the total rental cost and total buying cost.

$\backslash$table$[[,$Total Cost$],[$Rental cost$,],[$Buying cost$,]]$

b$.$ Based on the cost criteria, would you recommend buying or renting?

Buying

Renting