Sybil Kline rents a home for $970 a month. Her other annual expenses of renting total $1,305. If she buys the home, her estimated yearly expenses would
be mortgage interest, $5,100; property taxes, $1,890; depreciation, $2,400;
maintenance, $1,100; insurance, $479; utilities, $1,470; and lost interest income,
$1,020. She would save $1,536 in income taxes. Are her net annual costs of
housing lower by renting or buying? How much is saved