You are currently renting an apartment for $725 per month and paying $275 annually for renter’s insurance. You just found a small townhouse you can buy for $185,000. You have enough cash for a $10,000 down payment and $4,000 in closing costs. You estimated the following costs as a percentage of the home’s price: property taxes, 2.5 percent; homeowner’s insurance, 0.5 percent; and maintenance, 0.7 percent. You are in the 25 percent tax bracket. Using Worksheet 5.2, calculate the cost of each alternative and recommend the least costly option—rent or buy.