renting versus Owning

Before you upload your file, ensure your name appears on the top of every page of your document. 1. Find an advertisement for a house or condominium that costs less than $150 000. Using either the formula or your graphing calculator, determine the monthly payments. The bank offers you a rate of 5.7%/a compounded monthly and amortized over 25 years as long as you make a down payment of at least 5%. 2. Calculate and add up all of the initial estimated costs involved in purchasing a new home (i.e., moving truck, land transfer taxes, lawyer fees, etc.) 3. If you were 22 years old, attending your final year of college, and working a part time job earning $1200 per month, would you rent or buy? Explain your reasoning (consider down payment, risk of repairs needed, your age, etc.)