Pre-Calc Finance Project

Scenario 1

After taxes he makes 42,000 a year or 3,500 a month and after car payments he makes 3,050 a month, He could potentially afford to pay around $800 a month after all other expenses are paid for, utility, gas, etc. His minimum monthly payment for a 30 year loan on the $49,990 house with 10% down would be $254.14 a month, at the end of the 30 years he would have paid $91,490.40. If he paid 15% more on his monthly payment or $292.26 a month it would take him rougly only 22 years to pay it off for a total of $77,352.45 versus $91,490.40 so a savings of $14,137.94 and 8 years.


[PV equation with 10% down] 44,910=[1-(1+.05541/12)^-360]/(.05541/12)
N1=360 (12x30)
49,900-(.1x49,9000= $44,910
Pmt of $254.14x12x30=$91,490.4
[solving for 15% more savings] Pmt1=254.14x.15+254.14=292.26
When Pmt2=292.26 Then N2=264.67
New NxPmt=$77,352.45
[Solving for savings] $91,490.40-$77,352.45=$14,137.94