You are planning on living in the city Houston, Texas for 5


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You are planning on living in the city Houston, Texas for 5 years. You are decoding to rent or buy a house for this five year period. Rent: Monthly rental cost will be 1,200 paid at the end of each month. Buy: The purchase price of the house you intend to buy is 220,000. You will pay cash. You believe you can sell the house for 250,000 at the end of five years. Which option (buy or rent) is better, and how much? The interest rate is 5.76% COMPOUNDED MONTHLY. Ignore income taxes. Also ignore any other factors not specifically mentioned in the data above. A. Buy is better. The difference is 30,000 B. Rent is better. The difference is 24,020 C. Rent is better. The difference is 30,000 D. Buy is better. The difference is 24,020

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