and Terrence Webster, married friends of yours who live in Nashville, need your help.They cannot decide whether they should continue to rent their apartment when their lease expires on December $31$ of this year, or to buy a home and move January $1,2025.$ Here are the facts they found from their research:Rental costsOne year lease renewal on $1/1/2025$ with a continued monthly rent of $$3,500$The landlord will likely raise the rent annually starting in $2026$ because Nashville is a hot market. Based on history, the rate of increase is expected to be $5\%$ for the next several years.$\backslash$deg Annual renter's insurance: $$420,$ which will likely increase at the rate of home values in Nashville The landlord will return their security deposit of one$-$month's rent $($$$3,500)$ when the Websters end their lease Home buying costs The down payment is $20\%$ of the home purchase priceLoan fees average $$1,500$ and are included in the loan amount $($and thus themonthly loan repayment. Loan fees cover the legal work and other costs to process the transaction and are non$-$recutting.The current annual interest rate on home loans for people with the Websters" credit rating is $7\mathrm{.}0\%$The term of the loan will be $30$ yearsHome values are expected to appreciate $5\%$ annually over the next few yearsAnnual homeowners' insurance is an estimated $0\mathrm{.}5\%$ of the current $($appreciated$)$ value of the homeYearly maintenance is expected to be $1\mathrm{.}0\%$ of the current $($appreciated$)$ value of the home Annual property taxes generally are $0\mathrm{.}6\%$ of the current $($appreciated$)$ value of thehomeWith changes to the tax law, Terrence and Gail expect to take the standarddeduction over the next four years rather than itemizing. Therefore, the mortgage interest they pay if they decide to buy will have no tax consequence.The Websters have sufficient assets to pay the down payment, but if they pay the down payment, they will not receive the $5\%$ appreciation they expect from interest, dividends, andappreciation of the down pavment funds.