Caroline is a single parent. Her annual net income is 42 000. She has 25 000 in savings. Caroline…

Caroline is a single parent. Her annual net
income is 42 000.
She has25 000 in savings.
Caroline spends 125/week
on food, 400/month
on transportation, 120/month
on clothing, 75/2 weeks
on entertainment, and 200/month on
miscellaneous expenses.

Option 1: Buying a 3-bedroom townhouse Down
payment of18 000 Bi-weekly
mortgage payments of $640 Monthly maintenance fees of 250

Option 2: Renting a 3-bedroom townhouse1025 per month, plus
utilities Which housing option would you recommend to Caroline? Justify your
answer.

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