Heather estimates that she would pay $4,150 a year for taxes, insurance, and maintenance on a home she
bought. Other annual home costs would be $8,800 in mortgage loan interest and $1,300 in estimated
depreciation. During the year, Heather would lose $820 interest on her down payment, but her income
taxes would be $1,145 less. Heather could have rented the home for $1,350 a month and had annual
expenses of $205 for insurance and $1,790 for utilities. Her security deposit would have been $1,200.
For the first year, would it have been less expensive to buy or rent the house, AND how much
less?