The total cost of the house for buying is ₹60000, but the rent for the same house is ₹1300 per month. Raj wants to live in that house only for 1 year. In this situation, What is better?

Renting

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Buying

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Renting or buying

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None of the above

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Solution

The correct option is A Renting
Cost for buying the house $= ₹ 60000$

Cost for renting the house for one month $= ₹ 1300$
Cost for renting the house for 1 year $= 12 \times$ Cost for renting the house for one month
$= 12 \times ₹ 1300 = 15600$

As ₹15600 < ₹60000, renting is better than buying the house.

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The total cost of the house for buying is ₹60000, but the rent for the same house is ₹1300 per month. Raj wants to live in that house only for 1 year. In this situation, What is better?

The correct option is A RentingCost for buying the house =₹60000 Cost for renting the house for one month =₹1300 Cost for renting the house for 1 year =12×Cost for renting the house for one month =12×₹1300=15600 As ₹15600 < ₹60000, renting is better than buying the house.