MATH201 - Portfolio Project Kimberly Patten

3 – Show work Housing (Need) Rent or mortgage payment = property taxes = repairs = etc. $808.17 21% 808.17- 3883.33=0.208*100=20.8 1 Work: Food (Need) Groceries = going out to eat = small snacks (lattes, vending machine, etc.) = Formula for Child(ren) = $250.00 6% 250/3883.33=.064*100=6. 4 Insurance (Need) Life = Medical = Doctor Visits for Child(ren) = Home = Auto = $ 150 4% 150/3883.33=.0386*100= 3.86 Work: Transportatio n (Need) Car payment = Fuel = Parking = Oil change = Bus Fares = $700.00 18% 700.00/3883.33=.180*100 =18 Work: Utilities (Need) Water = Electricity = Internet = Gas = Phone = $500.00 13% 500/3883.33=.128*100=1 2.8 Work: Personal care (Want) Haircuts = Clothing = Make-up = Nails = Diapers / Clothing for Child(ren) = $100 3% 100/3883.33=.025*100=2. 5 Work: Entertainmen t (Want) Anything fun (leisure activities) = Netflix = Hulu = HBO Max = Disney Plus = Gym Membership = Subscription Boxes = Vacation = Birthday/Holiday gifts = $300 8% 300/3883.33=..0772*100= 7.72 Work: Miscellaneou s (Want) Donations = Day Care / School Expenses = Pet Expenses = Credit Card Payment = Student Loan Payment = $200 5% Work: Savings (Savings) Retirement / Savings = Emergency Fund (leftover income) = $200 $675.16 5% 3883.33- 3208.17=675.16*100 17% Work: TOTAL $3883.33 100%

6 I. Use the information from Table 1: Income from Part 1 and the suggested average of 10 times your gross annual income to calculate your recommended life insurance policy. Show the complete breakdown of work. II. What are dependents? Why would someone who is younger with dependents need more life insurance than someone who is older with few or no dependents? Explain your answer in 3-4 sentences. c) Calculate your Retirement Savings Saving for retirement is something everyone should consider as soon as they can start saving. The “All About the Benjamin’s Report” should be evidence that the earlier you can start saving, the more you should be able to save. I. Based on your current Savings from Table 2, calculate your retirement savings by the time you are 65. Calculate your retirement savings by the time you are 70. Show the complete breakdown of work. II. Based on your previous answer, discuss whether or not you believe you are saving enough each month to have enough money saved by age 65 to retire. What about age 70? If not, what specific actions can you take now to ensure you are saving enough for retirement? Write your answer in 3-4 sentences. d) Calculate your Emergency Fund Do you currently have an emergency fund? Financial experts recommend having at least 6 months of expenses saved up for emergencies. I. Calculate 6 TIMES your monthly expenses. Show the complete breakdown of work.

9 II. In 1-2 sentences, determine which houses are within your budget (remember, the housing ratio should be 20% or lower to be considered within budget). e) Calculate Total Amount Paid and Interest Choose one house that is within your budget that you would like to purchase. I. Calculate the total amount paid over the 30 years. Show the complete breakdown of your work. II. Calculate the total amount of interest paid. Show the complete breakdown of your work. f) Calculate Closing Costs Before taking ownership of your new house, you will need to pay closing costs. Closing cost fees will be approximately 5% of the list price of the house you are purchasing. Calculate the closing costs for the house you chose in part (e). Show the complete breakdown of your work. g) Financial Analysis Determine if you think you are ready to apply for a mortgage today, within 2 years, or more than 5 years in the future. Explain your answer in 3 – 4 sentences.