Rent Versus BuyAlex Guadet of Nashville, Tennessee, has been renting a twobedroom house for several years He pays $$900$ per month in rent for the home and $300$ per year in property and liability insurance. The owner of the house wants to sell it$,$ and Alex is considering making an offer. The owner wants $$160,000$ for the property, but Alex thinks he could get the house for $$150,000$ and use his $$25,000$ in $3$ percent certificates of deposit that are ready to mature for the down payment. Alex has talked to his banker and could get a $5$ percent mort$-$ gage loan for $25$ years to finance the remainder of the purchase price. The banker advised Alex that he would reduce his debt principal by $$1,700$ during the first year of the loan. Property taxes on the house are $$1,400$ per year. Alex estimates that he would need to upgrade property and liability insurance to $1,200$ per year and would incur about $$3,000$ in costs the first year for maintenance and improvements. Property values are increasing at about $3$ percent per year in the neighborhood Alex will have to pay $ $50$ a month for private mortgage insurance $.$ He is in the $25$ percent marginal IT IN CLASS tax bracket $.$ Page $264$ his the