Rental Costs Annual rent Insurance Security deposit $7,730 174 1,180 Buying Coate Annual mortgage payments Property taxes Insurance/maintenance Down payment/closing costs Growth In equity Estimated annual appreciation $10,600 (89,637 LB interest) 2,160 1, 110 4

Rental Costs Annual rent Insurance Security deposit $7,730 174 1,180 Buying Coate Annual mortgage payments Property taxes Insurance/maintenance Down payment/closing costs Growth In equity Estimated annual appreciation $10,600 (89,637 LB interest) 2,160 1, 110 4.500 963 1,800 Assume an after-tax savings Interest rate of 8 percent and a tax rate of 28 percent. (a) Calculate the total rental cost and total buying cost. (Round your Intermediate calculations and final answers to the neares whole number.) Total Cost Rental cost Buying cost (b) Based on the cost criteria, would you recommend buying or renting? Buying Renting