Finance Project

Scenario 1 Shaw

Scenario 1 Description

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.

2016 Mazda 6 iSport

Brent purchased this car through at $22,995 he will pay this car off over 5 years at a 6.5% interest rate, and will make cars payments monthly.

A= 22,995(1 + .065/12)^12*5

He will end up paying $31,797.89 over those 5 years.

1033 S Valley Rd Olathe, KS

Brent decided to buy a house in Olathe, KS. He approached a representative from Sebonic Financial to get a loan and with his credit score of 683 he was approved for an interest rate of 4.221%. He has decided to make payments of $732.29 per month to pay for the house. And he got an initial downpayment of $20,000 from his parents who were saving it for his college fund.

Increase in monthly payment

If Brent were to increase his monthly payment by 15% he would now be paying $842.13 per month. If he were to choose this he would only have to make 279 payments and he would save $28,669.15, and would pay it off 6 years and 9 months faster.



$53,000/12= $4,413.66 per month

Utilities- $1,000

Phone- $75

Food- $400

Entertainment- $350

House Payments- $732.29

Car Payments- $529.96

Retirement Fund- $441.37

College Fund for kids- $882.73

First Year Payment Projections

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2016 Mazda Mazda6 i Sport. (n.d.). Retrieved February 15, 2016, from

David Brent. (n.d.). Retrieved February 15, 2016, from

Dollar sign free clip art Free vector We have about (14) Free vector ai, eps, cdr, svg format in (1/1) pages. (n.d.). Retrieved February 15, 2016, from

Olathe Home For Sale. (n.d.). Retrieved February 15, 2016, from

Olathe KS Mortgage Rates - Find the Best Home Loan | Zillow. (n.d.). Retrieved February 15, 2016, from