1. What is the total amount of their condo monthly payment including taxes, insurance and condo association fees? (5 pts) 1. $1,248 2. $1,254 3. $1,265 4. $1,277 1. What is the total monthly cost of their apartment? (Hint: Total rental cost-monthly rent monthly cost of renter's insurance) (5 pts) 1. $950 2. $960 3. $965 4. $971 1. From a purely cost perspective, do you recommend buying or renting purely? (Hint: To get the monthly cost of buying, you should subtract the expected monthly appreciation from the total condo monthly payment found in Problem 3 and compare that with total monthly rental cost from Problem 4. Then choose the option that has a lower monthly cost) (5 pts) 1. Buying because doing so is $29 cheaper than renting 2. Buying because doing so is $47 cheaper than renting 3. Renting because doing so is $35 cheaper than buying 4. Renting because doing so is $56 cheaper than buying Buy or Rent a Ben and Stephanie are living in a two-bedroom apartment with a monthly rent of $950. Their renter's insurance coverage costs $115 a year. They are considering buying a condominium. Its price is $200,000 and they plan to make a down payment of 20% and obtain a 3.6% APR (annual percentage rate) 30-year mortgage to fund the rest of the purchase. Their annual property taxes are expected to $3,800 and annual property insurance premiunt will be $400 while the monthly condo association fee is $200. They estimate their condo unit will appreciate (rise) in price by $3,400 each year