The Bainter family is moving to a new town and needs a place to live. The Bainters are
considering renting or purchasing a home and have found a suitable option for each option.
The home for sale is listed at [tex]$150,000.00. They have $[/tex]30,000.00 for a down payment and are
qualified for a fixed rate 30-year mortgage with an annual interest rate of 4.2%. The rental home is
currently [tex]$900.00 per month, with rent expected to increase approximately $[/tex]75.00 every 4 years.
What is the total first year cost when purchasing the home?
1. 39,711.84
2. 37,041.84
3. 9,711.84
4. 7,041.84
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