MTH 101
Final Project: Financing Your Future
Step 1: Buying the House
You are in college, ready to pursue a career.
· What is your intended career? IT Manage
· Where would you like to live (city, state)? Austin Texas
· What is the average salary for that career (in the city where you wish to live)? $140,000
The House Price:
You will make a 20% down payment.
· How much is your down payment? $65,000
· How much will you need to mortgage (bo
ow)? $260,000.00
· Use the Loans Formula or Excel to find your monthly payment and total payback amount for the following:
· 15 years at 2.52% Monthly Payment _$2640.10_ Final House Cost __$377,498.15__
· 30 years at 3.75% Monthly Payment _$2108.10_ Final House Cost __$498,476.19__
· Calculate the Total Interest paid for:
· 15 years Mortgage _$52,498.15_
· 30 years Mortgage _$173,476.19 _
· Will you save in interest by choosing the 15-year mortgage and by how much?
Yes, I can save about $120,978.04 by choosing 15 year mortgage over 30 year.
Step 2: Furnishing the House
· Describe the furniture needed for your new home and the cost associated with these purchases. Table is listed under Credit Card 1 Excel tab.
· Use the Excel spreadsheet to compare different monthly payments at 18.99% for the furniture purchases on the credit card. Choose 3 different values to use for a monthly payment to compare the length of time to pay the complete balance.
· What is your first monthly payment:
· In which month will you pay off the credit card:
· What is your second monthly payment:
· In which month will you pay off the credit card:
· What is your third monthly payment:
· In which month will you pay off the credit card:
· Discuss when (or why) someone may choose a smaller monthly payment, even though it will take longer to pay the balance.
· Which payment is most likely to fit within your salary limits?
Step 3: Buying a Ca
· What type of vehicle will you buy? 2021 Toyota Highlande
· Is this a new or used vehicle? New vehicle
· What is the price of the vehicle? - $53,448
A new car will have an interest rate of 4.5% while a used car will have an interest rate of 5.75%.
Use the installment loan formula or Excel to find the monthly payment for your chosen vehicle.
· Monthly payment for 3-year loan:
· Monthly payment for 5-year loan:
· What is the total payback for each loan?
· 3 year: _________
· 5 year: _________
· Let’s compare two $20,000 vehicles, one new and one used.
· Use the installment loan formula (using 5 years) to find the monthly payment for each vehicle.
· Used: ___________
· New: ___________
· How much is saved by buying a new vehicle if both are $20,000?
Financial advisers’ recommendations:
· Spend no more than 28% of your gross monthly income for your mortgage payment.
· Spend no more that 36% of your gross monthly income for your total monthly debt, including mortgage payments, car payments, credit card bills, student loans, and medical bills.
Based on this information, is it wise for you to purchase this house with a 15-year mortgage or a 30-year mortgage? Why or why not? Show your calculations to support your answer.
Step 4: Using Your Housing Information Data Table
· Find the mean, median, and standard deviation of each column of data of the 30 homes in your table (from Milestone 2). (Round to the nearest hundredth.)
· Answers should be on Excel
· Find 15 homes in Chicago from Redfin. Find the number of bathrooms, bedrooms, and total square feet of the home.
· Find the mean, median, and standard deviation of each column of data for the homes in your table. (Round to the nearest hundredth.)
· Answers should be on Excel.
· Compare the Chicago home values to the homes you found in Milestone 2.
· How do the means compare?
· How do the medians compare?
· How do the standard deviations compare?
· What does this tell you?
· What are some reasons for the differences?
· Was your survey bias in any way? Why or why not?
· How may this information be used?
· Why might this information be important?
In this project you bought and furnished a house, bought a car, and compared data from housing in two different living areas.
· How might you use this information in the future?
· Do you find the information used and gained in this project to be beneficial? Why or why not?
· Did anything surprise you from this project?
· What is one piece of information you wish you would have known earlier?
· What is one piece of information you would be willing to share with others?
Step 5. Present
You have come so far! Now is your chance to showcase your finds and what you have learned.
1. Create a PowerPoint presentation that highlights your main findings from each of the steps.
2. Feel free to include pictures along with your data.
3. Share with the class at least one answer to the following questions you just answered!
· How might you use this information in the future?
· Do you find the information used and gained in this project to be beneficial? Why or why not?
· Did anything surprise you from this project?
· What is one piece of information you wish you would have known earlier?
· What is one piece of information you would be willing to share with others?
Mortgage
15 years at 2.52%
House Price $325,000.00
Down Payment - 20% $65,000.00
Total Mortgage (How much you are bo
owing) $260,000.00
Loan Period in Months 180
APR - Annual Percentage Rate 2.52%
Monthly Mortgage Payment: PMT() $1,736.10
Total Mortgage Payback $312,498.15
Total Interest $52,498.15
Final House Cost (Including Downpayment) $377,498.15
30 years at 3.75%
House Price $325,000.00
Down Payment - 20% $65,000.00
Total Mortgage (How much you are bo
owing) $260,000.00
Loan Period in Months 360
APR - Annual Percentage Rate 3.75%
Monthly Mortgage Payment: PMT() $1,204.10
Total Mortgage Payback $433,476.19
Total Interest $173,476.19
Final House Cost (Including Downpayment) $498,476.19
Monthly House Debt 15 Years
Month HOA Fees $142.00
Monthly Homeowners Insurance $295.00
Monthly Property Taxes $467.00
Monthly Payment $1,736.10
Total Monthly House Payment $2,640.10
Monthly House Debt 30 Years
Month HOA Fees $142.00
Monthly Homeowners Insurance $295.00
Monthly Property Taxes $467.00
Monthly Payment $1,204.10
Total Monthly House Payment $2,108.10
Credit Card 1
Month Beginning Balance Finance Charge Balance After Fee Minimum Payment Balance After Payment
1 $0.00 $0.00 $0.00 $0.00
2 $0.00 $0.00 $0.00 $0.00
3 $0.00 $0.00 $0.00 $0.00
4 $0.00 $0.00 $0.00 $0.00
5 $0.00 $0.00 $0.00 $0.00
6 $0.00 $0.00 $0.00 $0.00
7 $0.00 $0.00 $0.00 $0.00
8 $0.00 $0.00 $0.00 $0.00 Furniture Cost
9 $0.00 $0.00 $0.00 $0.00
10 $0.00 $0.00 $0.00 $0.00
11 $0.00 $0.00 $0.00 $0.00
12 $0.00 $0.00 $0.00 $0.00
13 $0.00 $0.00 $0.00 $0.00
14 $0.00 $0.00 $0.00 $0.00
15 $0.00 $0.00 $0.00 $0.00
16 $0.00 $0.00 $0.00 $0.00
17 $0.00 $0.00 $0.00 $0.00
18 $0.00 $0.00 $0.00 $0.00
19 $0.00 $0.00 $0.00 $0.00
20 $0.00 $0.00 $0.00 $0.00
21 $0.00 $0.00 $0.00 $0.00
22 $0.00 $0.00 $0.00 $0.00
23 $0.00 $0.00 $0.00 $0.00
24 $0.00 $0.00 $0.00 $0.00
25 $0.00 $0.00 $0.00 $0.00 Total $0.00
26 $0.00 $0.00 $0.00 $0.00
27 $0.00 $0.00 $0.00 $0.00
28 $0.00 $0.00 $0.00 $0.00
29 $0.00 $0.00 $0.00 $0.00
30 $0.00 $0.00 $0.00 $0.00
31 $0.00 $0.00 $0.00 $0.00
32 $0.00 $0.00 $0.00 $0.00
33 $0.00 $0.00 $0.00 $0.00
34 $0.00 $0.00 $0.00 $0.00
35 $0.00 $0.00 $0.00 $0.00
36 $0.00 $0.00 $0.00 $0.00
37 $0.00 $0.00 $0.00 $0.00
38 $0.00 $0.00 $0.00 $0.00
39 $0.00 $0.00 $0.00 $0.00
40 $0.00 $0.00 $0.00 $0.00
41 $0.00 $0.00 $0.00 $0.00
42 $0.00 $0.00 $0.00 $0.00
43 $0.00 $0.00 $0.00 $0.00
44 $0.00 $0.00 $0.00 $0.00
45 $0.00 $0.00 $0.00 $0.00
46 $0.00 $0.00 $0.00 $0.00
47 $0.00 $0.00 $0.00 $0.00
48 $0.00 $0.00 $0.00 $0.00
49 $0.00 $0.00 $0.00 $0.00
50 $0.00 $0.00 $0.00 $0.00
51 $0.00 $0.00 $0.00 $0.00
52 $0.00 $0.00 $0.00 $0.00
53 $0.00 $0.00 $0.00 $0.00
54 $0.00 $0.00 $0.00 $0.00
55 $0.00 $0.00 $0.00 $0.00
56 $0.00 $0.00 $0.00 $0.00
57 $0.00 $0.00 $0.00 $0.00
58 $0.00 $0.00 $0.00 $0.00
59 $0.00 $0.00 $0.00 $0.00
60 $0.00 $0.00 $0.00 $0.00
61 $0.00 $0.00 $0.00 $0.00
62 $0.00 $0.00 $0.00 $0.00
Credit Card 2
Month Beginning Balance Finance Charge Balance After Fee Minimum Payment Balance After Payment
1 $0.00 $0.00 $0.00
2 $0.00 $0.00 $0.00 $0.00
3 $0.00 $0.00 $0.00 $0.00
Credit Card 3
Month Beginning Balance Finance Charge Balance After Fee Minimum Payment Balance After Payment
1 $0.00 $0.00 $0.00
2 $0.00 $0.00 $0.00 $0.00
3 $0.00 $0.00 $0.00 $0.00
Ca
3-year Loan 5-year Loan
Car Price Car Price
APR APR
Length in Months Length in Months
Monthly Car Payment - PMT Monthly Car Payment - PMT
Total Payback Total Payback
Total Interest Total Interest
5-year Loan - NEW Car 5-year Loan - USED Ca
Car Price Car Price
APR (new) APR (used)
Length in Months Length in Months
Monthly Car Payment - PMT Monthly Car Payment - PMT
Total Payback Total Payback
Saving Calculation
Summary
Total Monthly Debt
Monthly House Payment Which term did you choose for the MORTGAGE?
Monthly Car Payment Which term did you choose for the CAR?
Mininum Credit Card Payment
Total Monthly Debt
Salary
Annual Salary
Monthly Salary
Credit Card Payment (1% of Annual Salary)
28% of Monthly Income
36% of Monthly Income
Housing Data
House Information Table ("Your Chosen City" from Milestone 2)
Number Price Number of Bedrooms Number of Bathrooms Total Square Feet Link Price
1 $290,000.00 4 1 1023 8913 Marmora Ave, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Mean = Average()
2 $359,900.00 2 2 1718 7916 Luna Ave, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Median = Median()
3 $265,000.00 2 2 1186 8243 Mango Ave, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Standard Deviation = STDEV.S()
4 $385,000.00 3 2 1795 7420 Davis St, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin
5 $449,000.00 5 3 3400 5819 Keeney St, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin
6 $389,900.00 4 2 1183 8832 Oketo Ave, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Number of Bedrooms
7 $499,000.00 5 3 1800 8812 Ozark Ave, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Mean = Average()
8 $412,000.00 4 3 1914 6626 Hazel St #0, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Median = Median()
9 $349,900.00 4 2 1872 5714 Lyons St, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Standard Deviation = STDEV.S()
10 $474,500.00 4 3 2458 7908 Maple St, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin
11 $314,900.00 3 1 1071 9513 Harlem Ave, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin
12 $434,900.00 4 2 2753 6518 Eldorado Dr, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Number of Bathrooms
13 $374,900.00 4 2 2000 8723 Callie Ave, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Mean = Average()
14 $486,000.00 4 3 2050 8428 Austin Ave, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Median = Median()
15 $429,900.00 3 2 1700 7932 Long Ave, Morton Grove, IL 60053 | MLS# XXXXXXXXXX | Redfin Standard Deviation = STDEV.S()
16 $315,000