Rental costs Purchase costs Annual rent $7,380 Annual mortgage payments $9,800 ($9,575 are interest) Insurance $145 Property taxes $1,780 Security deposit $650 Down payment/closing costs $4,500 Capital growth $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. Suppose this person has other tax deductions that exceed the amount of the standard deduction

. to. Calculate the total rental cost and the total purchase cost. (Do not round intermediate estimates. Round your answers to the nearest whole dollar.) Rental cost $ Purchase cost $

b.

Would you recommend buying or renting?

	Rent
	Comprar

Answer rating: 100% (QA)

a To calculate the total rental cost and the total purchase cost we need to consider the annual cost... View the full answer