Given:

Sales Price: $250,000

Marginal Tax Rate 30%

Property Taxes (monthly) 200

Insurance (monthly) 50

Cost to Rent an Apt. 1,000

Down Payment 20%

Mortgage Interest Rate 7.5%

Amortization Period 30 yrs.

What are the financial implications of renting or buying a home given the above data? Calculate on a monthly basis. (Hint: What is the after tax cost of buying the home compared to renting the apt?)

If possible, please use a financial calculator and show me how to solve as I need to learn this concept for this class.