Business, 31.03.2020 00:47 sshaynijaonnahayde

1. Based on the following data, would you recommend buying or renting? (LO 7.1) Rental Costs Buying Costs Annual rent, $7,380 Annual mortgage payments, $9,800 ($9,575 is interest) Insurance, $145 Property taxes, $1,780 Security deposit, $650 Down payment/closing costs, $4,500 Growth in equity, $225 Estimated annual appreciation, $1,700 Insurance/maintenance, $1,050 Assume an after-tax savings interest rate of 6 percent and a tax rate of 28 percent. Rental Costs Buying Costs Rent $7,380 Mortgage payments $9,800 Insurance 145 Taxes, insurance, maintenance 2,830 Interest lost on security deposit 39 Interest lost on down payment, closing costs 270 Growth in equity -225 Annual appreciation -1,700 Tax savings for mortgage interest -2,681 Tax savings for property taxes -498 Total rental costs $7,564 Total buying costs $7,796

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1. Based on the following data, would you recommend buying or renting? (LO 7.1) Rental Costs Buying...

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