Based on the following data, would you recommend buying or renting? Rental Cost Annual rent ...........$7,380 Insurance

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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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Essentials of Econometrics

ISBN: 978-0073375847

4th edition

Authors: Damodar Gujarati, Dawn Porter

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Question Posted: Aug 26, 2013 06:49 AM

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Based on the following data, would you recommend buying or renting? Rental Cost Annual rent ...........$7,380 Insurance

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Computation of the Following Rental Costs Particulars ...View the full answer

Essentials of Econometrics

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