a. Calculate the total rental cost and total buying cost Rental cost Buying cost Total Cost...
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a. Calculate the total rental cost and total buying cost Rental cost Buying cost Total Cost b. Based on the cost criteria, would you recommend buying or renting? Rental Costs Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property taxes Insurance, maintenance $ 7,520 196 1,440 $ 9,960 ($ 9,578 is interest) 1,970 1,750 4,500 382 2,500 Down payment, closing costs Growth in equity Estimated annual appreciation Assume an after-tax savings interest rate of 8 percent and a tax rate of 28 percent. a. Calculate the total rental cost and total buying cost Rental cost Buying cost Total Cost b. Based on the cost criteria, would you recommend buying or renting? Rental Costs Annual rent Insurance Security deposit Buying Costs Annual mortgage payments Property taxes Insurance, maintenance $ 7,520 196 1,440 $ 9,960 ($ 9,578 is interest) 1,970 1,750 4,500 382 2,500 Down payment, closing costs Growth in equity Estimated annual appreciation Assume an after-tax savings interest rate of 8 percent and a tax rate of 28 percent.
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Rent Insurance Interest Interest rate Total rental cos... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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