1. Based on the following data, would you recommend buying or renting? (LO7.1)

individual has other tax deductions that exceed the standard deduction amount.

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Rental Costs Annual rent, $7,380 Insurance, $145 Security deposit, $650 Buying Costs Annual mortgage payments, $9,800 ($9,575 is interest) Property taxes, $1,780 Down payment/closing costs, $4,500 Growth in equity, $225 Insurance/maintenance, $1,050 Estimated annual appreciation, $1,700