Question

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?

• A. Renting
• B. Buying
• C. Renting or buying
• D. None of the above

Answer 1

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.