Find the total year costs for 5 years, 10 years, and 15 years for purchasing and renting a house. Then compare your answers to those in the following table. Length of TimePurchase HomeRent Home
5 years $78,559.20$54,900.00
10 years $127,118.40 $115,200.00
15 years $175,677.60$180,900.00

Purchase Home
Total 5-year cost: $30,000.00 + 5 × 12 × $809.32 = $78,559.20
Total 10-year cost: $30,000.00 + 10 × 12 × $809.32 = $127,118.40
Total 15-year cost: $30,000.00 + 15 × 12 × $809.32 = $175,677.60

Rent Home
Total 5-year cost: (4×12×$900) + (1×12×$975) = $54,900
Total 10-year cost: (4×12×$900) + (4×12×$975) + (2×12×$1050) = $115,200
Total 15-year cost: (4×12×$900) + (4×12×$975) + (4×12×$1050) + (3×12×$1125) = $180,1900

Recall the pros and cons of buying a house and which conditions make it better to purchase a home. Also, think about the pros and cons of renting a house and which conditions make it better to rent. Use this information along with the total costs you found to answer the following prompts. Make sure to write your answer in complete sentences.

Does renting or purchasing makes the most sense for the Bainters if they live in the house 1 year? 5 years? 10 years? 15 years?
For each interval, explain why you think the Bainters should rent or purchase a home. Use mathematical evidence to support your conclusions.