For this question, use the regular payment equation to calculate your values (see Lesson 9). Narges is starting a 4-year nursing program offered cooperatively by a college and university. Her parents have offered to help her buy a house that she could share with other students. She has also found an apartment she could rent. Which option would you recommend? Justify your recommendations by showing all of your calculations and account for other factors other than financial considerations that may affect her decision.

Option 1: Buying a 3-bedroom bungalow

The bungalow costs $300 000. Her parents would pay a $35 000 down payment and the initial moving costs. She is able to secure a mortgage for the remainder at 6.06 % for 25 years.

The house has a basement apartment that is rented at $750/month, all inclusive.

Narges plans to rent 2 bedrooms in the main floor to other nursing students for $400/month each, including utilities

She is in walking distance of the college and not the university

Option 2: Renting a 1-bedroom apartment in a high-rise

$929 per month, including utilities