Finance Project - Scenario 3
By: Rob Chirpich
Jenny's Monthly Net Income (Salary After Tax)
- .3 * $30000 = $9000 Annual Cost of Taxes
- $30000 - $9000 = $21000 Annual Net Income
- $21000 / 12 = $1750 Monthly Net Income
Jenny's Cost of Student Loan (Monthly Student Loan Payment)
- PV = R * ( 1 - ( 1 + i ) ^ -n / i )
- $20000 = R * ( 1 - ( 1 + ( .068 / 12 ) ) ^ - ( 12 * 10 ) / ( .068 / 12 ) )
- $20000 = R * 86.89592298
- R = $20000 / 86.89592298
- R = 230.1606604
- Monthly Student Loan Payment is $230.16
Jenny's Monthly Budget (Monthly Payments)
- Monthly Cost of Food: $200
- Monthly Cost of Transportation: $400 (her car payment)
- Monthly Cost of Gas: $70 (@ $1.70 a gallon)
- Monthly Cost of Car Insurance: $100
- Monthly Cost of Utilities: $220 (includes bills for electric, natural gas, water, sewer, trash/recycling, and internet)
- Monthly Cost of Cell Phone: $45 (Verizon Wireless Medium Plan - Unlimited Talk and Text with 3GB of 4G LTE Data)
- Monthly Cost of Entertainment: $50 (two movie tickets, Netflix, and Internet)
- Monthly Cost of Student Loan: $230.16
Jenny's Remaining Monthly Net Income After Budgeting
$1750 - $200 = $1550 (Food)
$1550 - $400 = $1150 (Transportation)
$1150 - $70 = $1080 (Gas)
$1080 - $100 = $980 (Car Insurance)
$980 - $220 = $760 (Utilities)
$760 - $45 = $715 (Cell Phone)
$715 - $50 = $665 (Entertainment)
$665 - $230.16 = $434.84 (Student Loan)
Leftover Income is $434.84
Front View of Jenny's House
- 2 Bed
- 1.5 Bath
- 812 sqft
Interior View of Jenny's House
- Skylight
- Finished Basement
- Cable Ready
Backyard View of Jenny's House
- 2 Car Garage
- Patio
- Fenced Yard
Jenny's Mortgage Information
Secondary House Link:
Jenny's Home Address:
116 N Saxony Dr, Olathe, KS 66061
Cost of the House (before interest):
$87500 with APR of 4.319% for 30 years found on February 7, 2016 from Bank of America through Zillow with an interest rate of 4.250% also from Bank of America through Zillow
Monthly Payment of the House:
- PV = R * ( 1 - ( 1 + i ) ^ -n / i )
- $87500 = R * ( 1 - ( 1 + ( .04319 / 12 ) ) ^ - ( 12 * 30 ) / ( .04319 / 12 ) )
- $87500 = R * 201.6178866
- R = $87500 / 201.6178866
- R = 433.9892728
- Monthly Mortgage Payment is $433.99
First Year Amortization Tables
Table Using 4.250% Interest Rate
1 433.99 309.90 124.09 87500 - 124.09 = 87375.91
2 433.99 309.46 124.53 87375.91 - 124.53 = 87251.38
3 433.99 309.02 124.97 87251.38 - 124.97 = 87126.41
4 433.99 308.57 125.42 87126.41 - 125.42 = 87000.99
5 433.99 308.13 125.86 87000.99 - 125.86 = 86875.13
6 433.99 307.68 126.31 86875.13 - 126.31 = 86748.82
7 433.99 307.24 126.75 86748.82 - 126.75 = 86622.07
8 433.99 306.79 127.20 86622.07 - 127.20 = 86494.87
9 433.99 306.34 127.65 86494.87 - 127.65 = 86367.22
10 433.99 305.88 128.11 86367.22 - 128.11 = 86239.11
11 433.99 305.43 128.56 86239.11 - 128.56 = 86110.55
12 433.99 304.97 129.02 86110.55 - 129.02 = 85981.53
Table Using 4.319% APR
Month Payment Interest Principal Balance
1 433.99 314.93 119.06 87500 - 119.06 = 87380.94
2 433.99 314.50 119.49 87380.94 - 119.49 = 87261.45
3 433.99 314.07 119.92 87261.45 - 119.92 = 87141.53
4 433.99 313.64 120.35 87141.53 - 120.35 = 87021.18
5 433.99 313.20 120.79 87021.18 - 120.79 = 86900.39
6 433.99 312.77 121.22 86900.39 - 121.22 = 86779.17
7 433.99 312.33 121.66 86779.17 - 121.66 = 86657.51
8 433.99 311.89 122.10 86657.51 - 122.10 = 86535.41
9 433.99 311.46 122.53 86535.41 - 122.53 = 86412.88
10 433.99 311.01 122.98 86412.88 - 122.98 = 86289.90
11 433.99 310.57 123.42 86289.90 - 123.42 = 86166.48
12 433.99 310.13 123.86 86188.48 - 123.86 = 86042.62
Increased Principle House Payment
Original Total Mortgage Cost
433.99 * 360 = 156236.40
Mortgage Cost Before Increase is $156236.40
Increased Monthly Mortgage Payment
433.99 + 65.0985 = 499.0885
Increased Monthly Mortgage Payment is $499.10
Increased Total Mortgage Cost
N = 277.4876729
I% = 4.319
PV = 87500
PMT = -499.1
FV = 0
P/Y = 12
C/Y = 12
499.10 * 277.4876729 = 138494.0975
Mortgage Cost After Increase is $138494.10
Money and Time Saved
156236.40 - 138494.10 = 17742.3
Money Saved is $17742.30
360 - 277.4876729 = 82.5123271 Months
82.5123271 / 12 = 6.876027258 Years
Time Saved is ~83 Months or ~7 Years
APA References
Home Listing
Loan Rates
Home Listing Website
[EXTRA] Jenny's Unused Money
Unused Monthly Spending Money
434.84 - 433.99 = 0.85
Jenny's Unused Monthly Spending Money is $0.85