MTH 101 Milestone 1 Worksheet For this milestone, you will buy a house, furnish that house, and buy a car! Use the information you learned in the financial mathematics module to calculate the...

MTH 101
Milestone 1 Worksheet
For this milestone, you will buy a house, furnish that house, and buy a car! Use the information you learned in the financial mathematics module to calculate the appropriate values.
Step 1: Determine the appropriate information.
You are in college, ready to pursue a career. 
· What is your intended career?
· Where would you like to live (city, state)?
· What is the average salary for that career (in the city where you wish to live)?
Step 2: Buying the House
First, determine the amount you can spend on your home. Use the following table to determine the max amount you can spend.
    Salary Range
    Maximum Value of the House
    0 - $50,000
    $150,000
    $50,001 - $99,999
    $250,000
    $100,000 - $149,999
    $350,000
    > $150,000
    $450,000
What is the maximum value house you can afford?
Use the website http:
edfin.com to find your dream house in your desired area of residence.
Record the following information:
    Price of Home:
    
    Property Taxes:
    
    HOA Dues:
    
    Total Square Feet:
    
    Number of Bedrooms:
    
    Number of Bathrooms (Full and Half): 
    
    Link of Your Dream House: 
    
You will make a 20% down payment. 
· How much is your down payment?
· How much will you need to mortgage(bo
ow)?
What is your monthly house payment? (Refer to Excel for the term and rate)
· Mortgage HOA Fees:
· Monthly Homeowners Insurance: redfin
· Monthly Property Taxes:
· Monthly Payment: pmt
· Total Monthly House Payment:
Step 2: Furnish the House
It’s time to shop for your new home! Determine the rooms in your home and what furniture, 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 Cost
    Website 
    Bedroom 1
    
    
    
    Bathroom 1
    
    
    
    Kitchen
    
    
    
    Living Room
    
    
    
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 auto fill feature. 
You will need to add the beginning balance in column B and calculate the monthly payment in column E. The other formulas are done for you. 
Use a monthly payment of 1% of your yearly salary. 
Autofill the columns until the balance is paid in full. 
How many months will it take before the furniture is paid in full?
Step 3: Buy a Ca
Choose a vehicle to purchase (new or used). Please list the website where the information is obtained. 
· What type of vehicle will you buy (yea
make/model)?
· What is the price of the vehicle?
· Link to the car you are purchasing:
A new car will have an interest rate of 3.39% while a used car will have an interest rate of 5.87%. 
Use the installment loan formula from Module 3 to find the monthly payment for your chosen vehicle. 
· Monthly payment for 3 year loan:
· Monthly payment for 5 year loan:
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!)
2. 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. Given these recommendations, do we fall within the recommended guidelines? (Show your work!)
Step 4: Reflection 
Identify at least three specific math skills that you learned up to this point that were new to you or with which you previously might have struggled.
How did each of these skills help you in this Milestone assignment? Be specific.
Are there math skills from the first few modules that still challenge you? Be honest and tell me why.  
Are there math skills with which you are becoming more confident? Be honest and tell me about it. 
Be ready to share these thoughts in our next class.

Mortgage
    20 years at 2.48%
    House Price
    Down Payment - 20%
    Total Mortgage (How much you are bo
owing)
    Loan Period in Months
    APR - Annual Percentage Rate
    Monthly Payment: PMT()
    Total Mortgage Payback
    Total Interest
    Final House Cost (Including Downpayment)
    Monthly House Payment
    Month HOA Fees
    Monthly Homeowners Insurance
    Monthly Property Taxes
    Monthly Payment (PMT)
    Total Monthly House Payment
    Total Monthly Debt
    Monthly House Payment
    Monthly Car Payment
    Mininum Credit Card Payment
    Total Monthly Debt
    Salary
    Annual Salary
    Monthly Salary
    Credit Card Payment (1% of Annual Salary)
    28% of Monthly Salary
    36% of Monthly Salary
Credit Card
    Month    Beginning Balance    Finance Charge    Balance After Fee     Minimum Payment    Balance After Payment        Instructions: Place your beginning balance in B2 and minimum payment in E2.
Highlight A3 thru F3 and drag down until your balance is 0
    1        $0.00    $0.00        $0.00
    2    $0.00    $0.00    $0.00    $0.00    $0.00
    3
    4
    5
                                Furniture    Cost
                                Total Cost    $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