Kayla Thompson is currently renting an apartment for $725 per month and paying $275 annually for renters insurance. She just found a small townhouse that she can buy for $285,000. She has enough cash for a $10,000 down payment and $4,000 in closing costs. Her bank is offering 30-year mortgages at 6 percent per year. Kayla estimated the following costs as a percentage of the homes price: property taxes, 2.5 percent; homeowners insurance, 0.5 percent; and maintenance, 0.7 percent. She is in the 24 percent tax bracket and has an after-tax rate of return on invested funds of 4 percent. Using Worksheet 5.2, calculate the cost of each alternative and recommend the less costly optionrent or buyfor Kayla. Beyond the financial costs associated with renting vs purchasing, explain other benefits and risks associated with both of these options.