(Answered) Based on the following data would you recommend buying or

Finance

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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