7. Assume the rent is now $1000 a month and will increase by 3% each year. Compute their yearly federal income taxes (which are higher when renting because they dont have the deductions).

8. By renting they are saving a lot of money each year! They pay less for rent than a mortgage, and they dont pay property taxes (they do however pay more in income tax). Assume the extra money (include the $40,000 in savings as initial deposit) they have from renting versus buying is all invested at 10% a year, and every year their extra money is added to this account. Create a column titled Extra Money. How much extra money do they have after 20 years?

9. Assume the house increases in value by 3% a year. Which option ends up with more money for Deb and Rusty to retire on assuming they sell the house after 20 years?