Rental Costs				Buying Costs
Annual rent	$	8,310		Annual mortgage payments	$	10,550	($9,628 is interest)
Insurance		218		Property taxes		2,000
Security deposit		1,640		Insurance/maintenance		1,980
				Down payment/closing costs		4,500
				Growth in equity		922
				Estimated annual appreciation		2,000

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. (Round your intermediate calculations and final answers to the nearest whole number.)

(b) Based on the cost criteria, would you recommend buying or renting?

• Renting

• Buying