Reference no: EM131145204
Based on the following data, would you recommend buying or renting?
Rental Cost
Annual rent ........... $7,380
Insurance ............ $145
Security deposit .......... $650
Buying Cost
Annual mortgage payments ..... $9,800 ($9,575 in interest)
Property Taxes ........... $1,780
Insurance/maintenance ....... $1,050
Down payment/closing cost ..... $4,500
Growth in equity .......... $225
Estimated annual appreciation .... $1,700
Assume an after-tax saving interest rate of 6 percent and a tax rate of 28 percent.
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Based on the following data would you recommend buying
: Based on the following data, would you recommend buying or renting? Assume an after-tax saving interest rate of 6 percent and a tax rate of 28 percent.
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