Based on the following data, would you recommend buying or renting?

Assume an after-tax savings interest rate of 6 percent and a tax rate of 28 percent.

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Table Summary: Under "rental costs" there are 3 rows. Under "buying costs" there are 6 rows. Buying Costs Rental Costs Annual rent, $7,380 • Insurance, $145 • Security deposit, $650 Annual mortgage payments, $9,800 ($9,575 is interest) • Property taxes, $1,780 Insurance/maintenance, $1,050 Down payment/closing costs, $4,500 • Growth in equity, $225 Estimated annual appreciation, $1,700