Solve. -You Are in the 25% Tax Bracket. the Apartment Rents

Multiple Choice

Solve.
-You are in the 25% tax bracket. The apartment rents for $1500 per month. Your monthly mortgage payments would be $1700, of which an average of $1400 per month goes toward interest during the
First year. Determine whether renting or buying is cheaper (in terms of monthly payments) during
The first year. Assume your are itemizing deductions in all cases.

A) Renting is cheaper; $1500 per month for renting versus $1150 per month for buying
B) Buying is cheaper; $1400 per month for buying versus $1500 per month for renting
C) Renting is cheaper; $1500 per month for renting versus $1700 per month for buying
D) Buying is cheaper; $1350 per month for buying versus $1500 per month for renting