# PreCalc Project Scenario #1

### hour 5

## Scenario

Brent is a construction foreman who did not attend college. He is 24 years old, and earns an annual salary of $50,000. He just purchased a $23,000 car with a 6.50% 5 year car loan. He wants to buy his first home in the next few months.

## Monthly expenses

## Gas and Car insurance

An average full coverage car insurance for a 24 year old driver is $325.67

## Total monthly budget

Food: $364.08

Utilities: $148.21

Entertainment: $100

Phone bill: $65

Car payment: $450.02

**Total monthly expenses:**** $1,452.98 **

## Budget for house

$3,125 - $1,452.98 =** $1672.02**

## Actual monthly payment

**$205,000.**

It is located in Westbrooke Dr, Overland Park, and has four bedrooms.

The house is 2,022 square feet, but Brent earns enough and always wanted to live in a big house.

I used the present value formula again to find the monthly mortgage payment which will be **$952.88 **

## Total house payment

**$343,036.8**

Interest: 343,036.8 - 205,000 = **$138,036 **