Finance Project scenario 3

Hour6 Shunsuke Furuhashi

Total Income

Income: $30000

Tax: 15%

Actual Annual Income: $25500

Actual Monthly Income: $2125

Cost of Living

Student Loan

Total Amount: $20,000

Interest Rate: 6.80%

It will be paid in 10 years

Monthly Payment: $230.16

Total Actual Payment: $27619.2


Other Monthly Payments

Food: $350

Gas: $70

Car: $400

Utilities: $200

Car Insurance: $120

Cell Phones: $100

Entertainments Costs: $160


Total Monthly Payment (except for house payment)

$1630.16


Remained (Available money for house)

$494.84 per each month

I can buy a house which is $104152.26


House

Total Price: $85000

(http://www.trulia.com/property/3220907329-12625-W-110th-Ter-Overland-Park-KS-66210)

Interest Rate 3.96% (https://www.wellsfargo.com/mortgage/rates/)

Monthly Payment: $403.85

It takes 30 years to finish the payment

Total Actual Payment: $145386


Stock

Monthly Income: $2125

Total Monthly Payment: $2034.01

I keep $90.99 in bank every month

Cost of Living (increasing monthly payment 15%)

Student Loan (same)

Total Amount: $20,000

Interest Rate: 6.80%

It will be paid in 10 years

Monthly Payment: $230.16

Total Actual Payment: $27619.2


Other Monthly Payments (same)

Food: $450

Gas: $60

Car: $400

Utilities: $130

Car Insurance: $150

Cell Phones: $30

Entertainments Costs: $160


Total Monthly Payments (except for house payment)

$1630.16


Remained

$494.84 per each month


House (Increasing monthly payments by 15%)

Total Price: $85000

(http://www.trulia.com/property/3220907329-12625-W-110th-Ter-Overland-Park-KS-66210)

Interest Rate: 3.96% (https://www.wellsfargo.com/mortgage/rates/)

Monthly Payment: $464.43 (increased by 15%)

It takes 23 years and 6 months to finish payment , so it saves 6 years and 6 months

Actual Total Payment $130969.2

It saves $14416.74


Stock

Monthly Income: $2125

Total Monthly Payment $2094.59

I keep $30.41 in bank every month

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