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

RentalCostsBuying CostsAnnual rent$7,980Annual mortgage payments$10,700(9,875 is interest)Insurance$205Property taxes$2,020Security deposit$1,250Down payment/closing costs$5,400Growth in equity$825Insurance/maintenance$1,650Estimated annual appreciation$2,300

Assume an after-tax savings interest rate of 6 percent and a tax rate of 28 percent. Assume this individual has other tax deductions that exceed the standard deduction amount.

a.Calculate total rental cost and total buying cost.(Do not round intermediate calculations. Round your answers to the nearest whole dollar.)

Rental cost$Buying cost$

b.Would you recommend buying or renting?BuyingRenting