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Derek and Meagan Jacoby recently graduated from State University, and Derek accepted a job in business consulting while Meagan accepted a job in computer programming.

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Derek and Meagan Jacoby recently graduated from State University, and Derek accepted a job in business consulting while Meagan accepted a job in computer programming. Meagan inherted $70,000 from her grandfather, who recently passed away. The couple is debating whether they should buy or rent a home. They located a rental home that meets their needs. The monthly rent is $3,300. They also found a three-bedroom home that would cost $340,000 to purchase. The Jacobys could use Meagan's inheritance for a down payment on the home. Thus, they would need to borrow $270,000 to acquire the home. They have the option of paying two discount points to recelve a fixed interest rate of 4.50 percent on the loan or paying no points and recelving a fixed interest rate of 5.70 percent for a 30 -year fixed loan. Though anything could happen, the coyple expects to live in the home for no more than five years before relocating to a different reglon of the country. Derek and Meagan don't have any school-related debt, so they will save the $70,000 if they don't purchase a home. Also, consider the following information: - The couple's marginal tax rate 1520 percent. - Regardless of whether they buy or rent, the couple will itemize thelr deductions and have the ability to deduct all of the property taxes from the purchase of a residence. - If they buy, the Jacobys would purchase and move into the home on January 1, 2023. - If they buy the home, the property taxes for the year are $4,650. - Disregard loan-related fees not mentioned above. - If the couple does not buy a home, they will put thelr money into thelr taxable annulty account, where they earn 4.95 percent annual interest. - Assume that all unstated costs are equal between the buy and rent options. Help the Jacobys with their decislons by answering the following questions: Note: Leave no answer blank. Enter zero if applicable. Comprehenslve Problem 14.68 Part a (Algo) a. If the Jacobys decide to rent the home, what is thelf atter-tax cost of the rentai for the first year? (include income from the annuity account in your analys/s.) Note: Pound your intermediate calculations to the nearest whole dollar amount

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