You are planning on moving and have to decide to either renting or purchasing in the new neighborhood. You need to locate an area you would want to move to and do the following:

1. Renting

a. Determine average monthly rent.

b. Assume a 5% discount rate.

c. Assume rent will increase $50 per month each year.

d. Assume you will rent for 15 years.

2. Purchasing

a. Determine average home sale price.

b. Assume payments for 15 years.

c. Assume 5% interest

Requirements:

1. Identify the location.

2. Explain the averages for both renting and purchasing.

3. Calculate the present value for both renting and purchasing.

4. Select whether you would choose to rent or purchase.

5. Support your decision of which would be more budget friendly, renting or purchasing.