Both of those pleasee ude is decading whether to rent or buy a condo in Chicago

Question

Both of those pleasee

ude is decading whether to rent or buy a condo in Chicago The rental is $2.500 a month a renter, Jude would not be responsible for the real estate taxes or repairs, but he would pay $180 annually for renter's insurance and $3,894 54 annually for unities If Jude buys, he will have a $2,246 monthly mortgage payment, a $4,320 annual property tax, and an $800 annual homcowner insurance cost Jude estimates repairs will require $850 annually Tbe utilities would be the same $3,89454 annually as with the rental If Jude wants to choose the option with the lower monthly housing expenses, should be rent or buy? How much will he save each month by selecting this option over the other? enny purchased P. L Barber stock for a price of $8.97 per share. Dividends are $045 per pp.453 455 share. What is the annual yield for Penny's stock? (over) 21 2328A

Explanation / Answer

11. RENT OR BUY DECISION:

12. ANNUAL YIELD FOR PENNY'S STOCK:

Annual yield = Dividend Per Share/Stock Price

=$0.45/$8.97

Cost Particulars Rent (Monthly Cost)($) Buy (Monthly Cost)($) Rental Cost 2500 0 Real Estate Taxes 0 360 Repairs Cost 0 70.83 Insurance Cost 15 0 Utilities 324.55 324.55 Mortgage Payment 0 2246 Homeowner Insurance Cost 0 66.67 TOTAL MONTHLY COST 2839.55 3068.045

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