Problem $9-1$ Comparing Renting and Buying $[$L$09-1]$

Assume an after$-$tax savings interest rate of $6$ percent and a tax rate of $28$ percent.

a$.$ Calculate the total rental cost and total buying cost.

$\backslash$table$[[,$Total Cost$],[$Rental cost$,],[$Buying cost$,$dots.................$]]$

b$.$ Based on the cost criteria, would you recommend buying or renting?

Buying

Renting