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

Rental Costs Buying Costs Annual rent, $7,380 Annual mortgage payments, $9,800 ($9,575 is interest)

Insurance, $145 Property taxes, $1,780 Security deposit, $650 Down payment/closing costs, $4,500 Insurance/maintenance, $1,050 Growth in equity, $225 Estimated annual appreciation, $1,700 Assume an after-tax savings interest rate of 6 percent and a tax rate of 28 percent.