Solution-Calculate the total rental cost and total buying

Calculate the total rental cost and total buying cost

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Reference no: EM131105648

Problem 9-1 Comparing Renting and Buying [LO2]

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	Insurance/maintenance	$	1,050
			Down payment/closing costs	$	4,500
			Growth in equity	$	225
			Estimated annual appreciation	$	1,700

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 dollar.)

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Calculate the total rental cost and total buying cost

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