The following assumptions are made for each investigation: The original mortgage is $300,000 amortized over 25 years at 3.99% compounded semi- annually Unless otherwise indicated, assume monthly payments are made. Unless otherwise indicated, assume the interest rate remains constant during the amortization period. Your aneware can he entered directly on this aceianmant hut plance hand in all rough work a MyCotigation FIVING WHICHSHg to eng 120 man Is it better to own a home or to rent? The answer to this question is no longer as one-sided as it has been for years. The attached article gives a financial breakdown comparing home ownership costs to rental costs. The mortgage used in the home ownership case is the same as defined for the previous Investigations you just completed. Read the article and answer the following: 1. What conclusion was reached by Mr. Tristani, the man who completed the study, regarding whether it's better to buy or rent these days? 2. What factors other than financial do you think influence whether one buys a house or rents? 3. The total mortgage payments for owning the home described here are $472,929. Look back to the results of Investigations 1, 2 and 3 which you just completed. Identify specifically how the homeowner could have decreased his/her mortgage cost. 4. The maintenance cost of this house each year is set at 4% of the market value of the house. According to Mr. Tristani, this cost goes up by about 3% each year, as does the value of the house. Calculate the maintenance costs for the first 5 years of the house. The increase in the rate of maintenance has been done for you: Year of home ownership Market value of house Rate of maintenance 1 2 3 4 $400,000 4.0% 4.12% 4.24% 4.37% 5 4.50% Maintenance costs