Julie Brown is in her late 20s. She is renting an apartment in the fashionable part of town for $1,200 a month. After much thought, shes seriously considering buying a condominium for $175,000. She intends to put 20 percent down and expects that closing costs will amount to another $5,000; a commercial bank has agreed to lend her money at the fixed rate of 6 percent on a 15-year mortgage. Julie would have to pay an annual condominium owners insurance premium of $600 and property taxes of $1,200 a year (shes now paying renters insurance of $550 per year). In addition, she estimates that annual maintenance expenses will be about 0.5 percent of the price of the condo (which includes a $30 monthly fee to the property owners association). Julies income puts her in the 25 percent tax bracket (she itemizes her deductions on her tax returns), and she earns an after-tax rate of return on her investments

of around 4 percent.

RaNT-OR-EYY Natisis A carrof esnTiNe 1. Ansal mptaicarke 3. Fentarestanamanas 9 - vatzentax avingerire 0. costordunne Friesilbme 1. Cimai morthufep wementi frerma: 3. Figerty aixal 120 tinf priar of hame? 1. Hemestanerin inerims 0.5 vailgian at hame 1. Aaitifenixat ) Miltariax fatar of atian isec 3+( 1) prinindamual apprectatirim wide of hame (: I. Iffipar ar home) Traxanemitam