Perform an engineering economy analysis of multiple alternatives decide between renting or buying a house. Determine the present worth of the investments.

Buy Cost $500,000 Sensitivity Analysis A Initial Payment Down Payment: 20% of cost Monthly Payments Now assume instead of 10% down you put 20% down payment on the house Mortgage: 15-year fixed 4% interest / year compounded monthly End of month payment Insurance (annual) $400 (increases by 1.5% per year). Assume beginning of the year payments Buy Cost $500,000 Sensitivity Analysis A Initial Payment Down Payment: 20% of cost Monthly Payments Now assume instead of 10% down you put 20% down payment on the house Mortgage: 15-year fixed 4% interest / year compounded monthly End of month payment Insurance (annual) $400 (increases by 1.5% per year). Assume beginning of the year payments