SOLUTION: You are in the 35% tax bracket. The apartment rents for $1800 per month. Your monthly mortgage payments would be 2100, of which an average of $1900 per month goes toward i
Algebra.Com
Question 1140078: You are in the 35% tax bracket. The apartment rents for $1800 per month. Your monthly mortgage payments would be 2100, of which an average of $1900 per month goes toward interest during the first year. Determine whether renting or buying is cheaper in terms of monthly payments during the first year. Assume you are itemizing deductions.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
Renting costs are 1800*12=$21,600
mortgage payments are 2100*12=$25,200
1900*12*0.35=deduction=$7980
the outlay with a mortgage is $25200-$7980=$17,220
buying and mortgage would be less expensive.
RELATED QUESTIONS
Sydney earns $2,800 a month. To qualify for a mortgage, her monthly payments must be less (answered by stanbon)
Sydney earns $2300 a month. To qualify for a mortgage, her monthly payments must be 35%... (answered by stanbon)
In the North Chicago area, an 820-square-foot apartment rents for $1510 per month. A... (answered by josmiceli)
All the units in an apartment building have either one or two bedrooms. The five story... (answered by richwmiller)
The Johnsons have accumulated a nest egg of $50,000 that they intend to use as a down... (answered by Theo)
The Johnsons have accumulated a nest egg of $50,000 that they intend to use as a down... (answered by math_tutor2020)
Assume that you have $2100 saved in a sinking fund in 1 year. The account pays 3.5%... (answered by MathLover1)
Suppose you take out a mortgage for $300000 at 6.5% interest per year compounded... (answered by Theo)
You have a good credit score, $100,000 for a down payment, and $2,500 per month available (answered by Theo)