Kayla Thompson is married and currently rents an apartment for $$550$ per month and paying $$350$ annually for renter's insurance. Her landlord required a $$1,000$ security deposit on the apartment. She just found a small townhouse she can buy for $$285,000.$ She has enough cash for a $$10,000$ down payment and $$4,200$ in closing costs. Her bank is offering $30-$year mortgages at a $6$ percent annual rate. Kayla estimated the following costs as a percentage of the home's price: property taxes, $2\mathrm{.}5$ percent; homeowner's insurance, $0\mathrm{.}5$ percent; and maintenance, $0\mathrm{.}7$ percent. She is in the $25$ percent tax bracket, has an after$-$tax rate of return on invested funds of $4$ percent, and expects the townhouse to appreciate $2$ percent per year. Using Worksheet $5\mathrm{.}2,$ calculate the cost of each alternative and recommend the least costly option $-$ rent or buy $-$ for Kayla. Assume that Kayla uses the standard deduction of $$24,000.$ Round the answers to the nearest dollar.

Cost of renting: $

Cost of buying: $

Kayla should

$-$Select$-$

the home.