# Jenny's Home

### Pre-Calc. Project (Scenario 3)

## Annual Salary 30 % of Jenny's Salary goes to taxes. So, without including tax, her monthly pay would be $ 2,333.33. She has a car payment each month too. So, minus her car payment she would have $ 2,103.33 for her monthly pay. | ## College Loan With a 6.8% of Interest rate, in ten years, Jenny can pay off her 20,000 loan, if she pays 230.16 dollars each month. | ## Money She can spend on house If Jenny pays $ 230.16 for the college Loan. Her monthly payment that she can use for her other expenses would be $ 1,873.17. If she needs a very comfortable payment for her house, she can use $ 500 each month for her house payment. |

## Annual Salary

30 % of Jenny's Salary goes to taxes. So, without including tax, her monthly pay would be $ 2,333.33. She has a car payment each month too. So, minus her car payment she would have $ 2,103.33 for her monthly pay.

## College Loan

With a 6.8% of Interest rate, in ten years, Jenny can pay off her 20,000 loan, if she pays 230.16 dollars each month.

## Down Payment Since Jenny doesn't have any savings, her down payment needs to be affordable in her monthly pay that she has left. With her down payment being 1% she can afford a $ 1000 for the first month. | ## Interest Rate According to the information from the website of Bank of America, on 12/29/13, the interest rate for a 30 years loan is 4.625%. | ## Present Value Since Jenny paid her 1% down payment, she only has $91,080 of her house loan left to pay. |

## Down Payment

Since Jenny doesn't have any savings, her down payment needs to be affordable in her monthly pay that she has left. With her down payment being 1% she can afford a $ 1000 for the first month.

## Interest Rate

According to the information from the website of Bank of America, on 12/29/13, the interest rate for a 30 years loan is 4.625%.

## Payment Per Month With a 30 years loan, on a 4.625% interest rate, Jenny's monthly payment will be $468.28. | ## 15 % more per month If Jenny decides to pay 15% more each month, she would pay $538.52 instead of paying $468.28. | ## Profit If she pays $538,52 each month, she can finish paying her house loan in less than 30 years. Therefore, by increasing her monthly payment by 15%, she can save $ 19,949.28 and 7 years. |

## Payment Per Month

With a 30 years loan, on a 4.625% interest rate, Jenny's monthly payment will be $468.28.

## 15 % more per month

If Jenny decides to pay 15% more each month, she would pay $538.52 instead of paying $468.28.

## Cited in APA Format

(2013, December 29). *Reece and Nichols*. Retrieved from http://www.reeceandnichols.com/homes-for-sale/KS/Olathe/66062/16501-W-126TH-Terrace-101739296#_

Torres, M. (2011). *Purchase Your Home for 1% Down*. Retrieved from http://onepercentdown.weebly.com/

(2013), *Bank of America*. Retrieved from https://www.bankofamerica.com/home-loans/mortgage/overview.go