Finance Project
By Chandler McKee
Scenario 3
Income
$21,000 net annual income (includes 30% taxes)
$1,750 is Jenny's net monthly income
Monthly Budget Breakdown
Food: $150
Utilities: $200
Cell phone: $60
Gas: $1.55/gallon = $50
Entertainment/Other: $150
Student loan: $230.16
Car payment: $400
Total monthly expenses= $1,300.16
$1,750.00 - $1,300.16 = $449.84 left per month
House Budget
Condo for Sale (found on Zillow):
Cost: $85,000
30 year interest rate: 3.75% (found on Bank of America)
Address: 12625 W. 110th Ter, Overland Park, KS 66210
Features: 2 beds & 1 bath, walking distance to shops & groceries, deck, fireplace
Total monthly payment= $393.65
$449.84 - $393.65 = $56.19 left per month
Over the course of the loan…
(393.65)(12)(30) = 141,714 - 85,000 = $56,714 payed in interest
Amortization Table
Increased Principle
With a 15% increase, it would take Jenny 23.6 years to pay off mortgage.
(N= 283.23/12 = 23.60 years)
Difference in total amount paid…
($452.70)(12)(23.60) = $128,204.64
$141,714 - $128,2014.64 = $13,509.36
References
Home Mortgage Loans from Bank of America. (n.d.). Retrieved February 5, 2016, from https://www.bankofamerica.com/home-loans/mortgage/overview.go
Real Estate:
Zillow. (n.d.). Retrieved February 5, 2016, from http://www.zillow.com/homes/for_sale/Overland-Park-KS/fsba,fsbo_lt/condo_type/75669884_zpid/40202_rid/1-_beds/50000-200000_price/179-716_mp/any_days/39.051718,-94.412041,38.781922,-94.957238_rect/10_zm/0_mmm/?3col=true