Based on the following data, would you recommend buying or renting? Rental Costs Annual rent Buying Costs Annual mortgage payments Property taxes Insurance Security deposit $7,430 $ 150 $ 675 Rental cost Buying cost Down payment/closing costs Growth in equity Insurance/maintenance Estimated annual appreciation Assume an after-tax savings interest rate of 7 percent and a tax rate of 32 percent. Assume this individual has other tax deductions that exceed the standard deduction amount. a. Calculate total rental cost and total buying cost. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Buying $9,900 (9,600 is interest) $1,800 $4,600 $ 300 $1,100 $1,750 b. Would you recommend buying or renting?

Fill in the missing numbers for the following statement of comprehensive income. (Input all amounts as positive values. Omit $ sign in your response.) Sales Costs Depreciation EBIT Taxes (34%) Net income Calculate the OCF. OCF $ What is the CCA tax shield? CCA tax shield 733,500 503,300 89,400

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Your mortgage payment, monthly PMI, monthly house insurance, and monthly property tax should total no more than 38% of your gross monthly income. If the total is more, then you are borrowing too much money. With the following payments and income, have you borrowed too much money? Description Mortgage Payment Monthly PMI Monthly Property Tax Monthly Home Insurance Total Gross Monthly Income Percent of GMI Dollars $1613.86 $11.30 $19.37 $6.46 Round your answers to the nearest dollar. Calculate 38% of your gross monthly income. $5284.44 Calculate the total of your payment, PMI, insurance, and property taxes. Are you borrowing too much? O You're borrowing too much. O You're not borrowing too much.