tax rate is 5%

Financial Planning Problems 1. Based on the following data, would you recommend buying or renting? Assume this person is earning and after-tax rate of 5% on any savings they have. Rental Costs Buying Costs Annual rent, $9,300 Annual mortgage payments, $10,800 ($10,400 is Annual insurance, $165 interest, Growth in equity, $400) Security deposit, $775 Annual property taxes, $1,780 Annual Insurance/maintenance, $1,050 Down payment/closing costs, $5,000 Estimated annual appreciation, $2.200