Find the total year costs for5

5years,10

10years, and15

15years for purchasing and renting a house. Then compare your answers to those in the following table.

Length of Time l Purchase Home l Rent Home

5years $78,559.20 $54,900.00

10 years $127,118.40 $115,200.00

15 years $175,677.60 $180,900.00

Purchase Home

• Total5-
• 5-year cost:$30,000.00+512$809.32=$78,559.20
• $30,000.00+512$809.32=$78,559.20
• Total10-
• 10-year cost:$30,000.00+1012$809.32=$127,118.40
• $30,000.00+1012$809.32=$127,118.40
• Total15-
• 15-year cost:$30,000.00+1512$809.32=$175,677.60
• $30,000.00+1512$809.32=$175,677.60

Rent Home

• Total5-
• 5-year cost:(412$900)+(112$975)=$54,900
• (412$900)+(112$975)=$54,900
• Total10-
• 10-year cost:(412$900)+(412$975)+(212$1050)=$115,200
• (412$900)+(412$975)+(212$1050)=$115,200
• Total15-
• 15-year cost:(412$900)+(412$975)+(412$1050)+(312$1125)=$180,1900
• (412$900)+(412$975)+(412$1050)+(312$1125)=$180,1900

Recall the pros and cons of buying a house and which conditions make it better to to purchase a home. Also, think about the pros and cons of renting a house and which conditions make it better to rent. Use this information along with the total costs you found to answer the following prompts. Make sure to write your answer in complete sentences.

• Does renting or purchasing makes the most sense for the Bainters if they live in the house1
• 1year?5
• 5years?10
• 10years?15
• 15years?
• For each interval, explain why you think the Bainters should rent or purchase a home. Use mathematical evidence to support your conclusions.