attachment_3[1]
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School
Fisk University *
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Course
410
Subject
Mathematics
Date
Nov 24, 2024
Type
docx
Pages
4
Uploaded by GrandTree9090
Math
137
Project
part
2
Step
1:
Determine
the
appropriate
information.
You
are
in
college,
ready
to
pursue
a
career.
1.
What
is
your
intended
career?
[Software
developer]
2.
What
is
the
average
salary
for
that
career
(in
the
state
where
you
wish
to
live)?
[$117,953]
3.
Where
would
you
like
to
live
(city,
state)?
[Austin,
Texas]
Step
2:
Buying
the
House
Use
the
website
http://redfin.com
to
find
your
dream
house
in
your
desired
area
of
residence.
Record
the
following
information
in
the
blue
cells:
Price
of
Home:
$229,000
Property
Taxes:
$409
HOA
Dues:
$352
Square
Feet:
831
Number
of
Bedrooms:
2
Number
of
Bathrooms
(Full
and
Half):
|
2
Link
of
Your
Dream
House:
2600
Penny
Ln
#207,
Austin,
TX
78757
|
MLS#
1175947
|
Redfin
You
will
make
a
20%
down
payment.
1.
How
much
is
your
down
payment?
[$45,800]
2.
How
much
will
you
need
to
mortgage?
[$183,200]
What
is
your
monthly
mortgage
payment?
Compare
4%
vs
8%
on
30
year
loan.
3.
Mortgage
Monthly
Payment:
4%
[$874.62]
8%
[$1,344.26]
Taxes:
[$4,908]
Homeowners
Insurance:
[$168]
Monthly
Total:
Mortgage
monthly
payment
+
taxes
+Homeowners
Insurance
4%
[$5950.62]
8%
[6420.26]
7.
8,
Total
Interest
over
the
30
year
loan
4%
[$131,664.9,]
8%
$300,732.41
How
would
the
8%
vs
4%
impact
on
your
financial
plan?
(monthly
payment
and
total
interest)
The
monthly
payment
at
8%
interest
is
significantly
higher
than
at
4%.
This
means
that
there
is
a
higher
monthly
financial
obligation
for
an
8%
interest
rate.
Also,
more
interest
would
be
paid
with
an
8%
interest
rate
compared
to
a
4%
interest
rate.
In
summary,
the
4%
interest
rate
appears
to
be
more
financially
advantageous
in
terms
of
both
monthly
affordability
and
total
interest
paid
over
the
life
of
the
loan.
Step
3:
Furnish
the
House
It's
time
to
shop
for
your
new
home!
Determine
the
rooms
in
your
home
and
what
furniture
and
other
items
you
will
need
to
purchase
for
each
room,
along
with
the
price.
List
the
website(s)
used
to
find
your
furniture
in
the
final
column.
Add
more
rooms
to
the
table,
as
needed.
Room
Items
to
Purchase
Total
Website
Cost
Bedroom
1
|
Bed,
Dresser,
Nightstand,
Bedding
set
$1850
www.Amazon.com
Bedroom
2
|
Bed,
Bedding
set,
Nightstand,
Dresser
$1600
www.Amazon.com
Bathroom
1
|
Shower
curtain,
Towel
set,
Toothbrush
holder
$110
www.Amazon.com
Kitchen
Dining
table
and
chairs,
Cookware
set,
$$700
www.Amazon.com
Dinnerware
set
Living
Sofa,
Coffee
table,
Tv
stand,
Rug
$1350
www.Amazon.com
Room
e
You
will
purchase
these
items
with
a
credit
card
at
18.99%
interest.
Use
the
given
Excel
document
with
pre-filled
formulas,
and
complete
columns
A
-
E
using
the
autofill
feature.
e
You
will
need
to
insert
the
beginning
balance
to
column
B
and calculate
the
monthly
payment
in
column
E.
The
other
formulas
are
done
for
you.
*
Use
amonthly
payment
of
1%
of
your
yearly
salary
first,
and
then
think
about
a
reasonable
fixed
amount
for
your
monthly
payment.
e
Autofill
the
columns
until
the
balance
is
paid
in
full.
1.
How
many
months
will
it
take
before
the
furniture
is
paid
in
full?
Include
the
answer
to
this
question
in
the
Excel
Workbook
“Summary”
sheet,
cell
B32.
[Answer]
Step
4:
Buy
a
Car
e
Choose
a
vehicle
to
purchase
(new
or
used).
Please
list
the
website
where
the
information
is
obtained.
Website:
[_
www.truecar.com
=
N
What
type
of
vehicle
will
you
buy?
[2016
Hyundai
Tucson
Limited
FWD]
w
What
is
the
price
of
the
vehicle?
[$10,991]
4.
|s
the
vehicle
used
or
new?
[Used
vehicle]
Search
what
interest
rate
the
car
dealers
currently
offer?
If
you buy
from
private
seller,
google
what
rates
banks
offer
currently
on
USED
car.
5.
Monthly
payment
for
3
year
loan:
[$329.41]
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6.
Monthly
payment
for
5
year
loan:
[$207.41]
Step
5:
Financial
advisers’
recommendations:
1.
Spend
no
more
than
28%
of
your
gross
monthly
income
for
your
mortgage
payment.
Given
these
recommendations,
do
we
fall
within
the
recommended
guidelines?
(Show
your
work!)
28%*$117953
=$
33,026.84
which
is
more
than
the
monthly
mortgage
payment.
Yes,
we
fell
within
the
recommended
guidelines.
2.
Spend
no
more
than
36%
of
your
gross
monthly
income
for
your
total
monthly
debt,
including
mortgage
payments,
car
payments,
credit
card
bills,
student
loans,
and
medical
bills.
Given
these
recommendations,
do
we
fall
within
the
recommended
guidelines?
If
not,
explain
how
you
can
fix
it
to
work.
[Answerj
36%*$117953
=
$42,463.08