WORLDS GREATEST PROJECT
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.
Justifications
[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
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
6321 Marty Street, Overland Park, Kansas 66209
Bibiliography
- Rate and Payment Results. (n.d.). Wells Fargo. Retrieved December 29, 2013, from https://www.wellsfargo.com/mortgage/buy/tools/rate_calc_results
- Map. (n.d.). Listing Search Form. Retrieved December 29, 2013, from http://www.reeceandnichols.com/Listing/ListingSearch.aspx?Search=f969d1d0-4402-46bf-a817-0187f0f8490d&SearchType=&ListingType=&ListingDistrictTypeID=&FirstLetter=&Sort=6&view=