Rental Costs Annual rent Insurance Security deposit Buying Costs $7,780 Annual mortgage payments 214 Property taxes 750 Insuranceaintenance Down payment/closing costs Growth in equity Estimated annual appreciation $10,490 (59,596 is interest) 2,010 1,480 4,500 894 1,950 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. (Round your intermediate calculations and final answers to the nearest whole number.) Answer is complete but not entirely correct. Rental cost Buying cost Total Cost 8,039 $ 10,106 (b) Based on the cost criteria, would you recommend buying or renting? Buying Renting
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