Hazel Nutt plans on living in NYC. Hazel is considering whether she should buy or rent. If Ms. Nutt buys the Co-Op apartment it will cost $550,000. This price includes all closing costs. Annual home ownership information: Property taxes: 1.5% of the property price Insurance: 1% of the property price Maintenance: 1.5% of the property price Mortgage loan: Assume Hazel will get a $450,000, 4%, 30-year interest only (IO) loan. There are no closing costs or points for the mortgage. Hazels marginal income tax rate is 30%. Her effective tax rate is 25%. She files her income tax returns as a single filer If she rents the same place, it will cost $3,000 per month in rent. Assume the apartment value is projected to grow 4% each year that Hazel owns the Co-Op. When Hazel decides to sell, the closing costs associated with selling is 4% If Hazel buys, what is her total cost of ownership for the first year? (Include all the annual home ownership costs and expenses, but DO NOT include the purchase price of the home.