You are planning on moving and have to decide to either renting or purchasing in the new neighborhood.

You are planning on
moving and have to decide to either renting or purchasing in the new
neighborhood. You need to locate an area you would want to move to and do the
following:
1. Renting

a. Determine average monthly rent.

b. Assume a 5% discount rate.

c. Assume rent will increase by $50 per month each year.

d. Assume you will rent for 15 years.
2. Purchasing

a. Determine the average home sale price.

b. Assume payments for 15 years.

c. Assume 5% interest
Requirements:
1. Identify the
location you will be moving to.
2. Explain the
averages for both renting and purchasing.
3. Calculate the
present value for both renting and purchasing.
4. Select whether you
would choose to rent or purchase.
5. Support your
decision of either renting or purchasing.

Last Completed Projects