Finance Project Scenario 2

Hour 6 PreCalc Finance Project Henry Ouang

Total Income

Annual Income is $70,000.

Tax in Kansas is at a rate of 6.45% for incomes above $30,001.
With tax the income becomes $65,485 per year.

This totals to $5457.08 every month.

Costs of Living Minimally

House

House initially costs $335,000.

The payment rate lasts for 30 years.

The interest rate is 4.2958%
There is an estimated monthly payment of $1657.00 minimally.

You end up paying $596,520.00


Student Loans

There is $35,000 in student loans.

The interest rate is 6.80%.

Minimum payment monthly of $402.79.

The student loans will be paid off in 10 years.

You end up paying $48,334.80.


Life Needs and Wants Per Month

Food: $500 a month.

Gas with the Car: $50 a month.

Car Insurance: $200 a month.

Going out with Friends: $120 a month.

Cell phone payment (already own one): $35 a month.

Water and Electricity bill: $150 a month.

Miscellaneous Items (shopping): $500 a month.

You end up paying around $1555.00 a month.


Total Payment Minimally Monthly

House payment: $1657.00

Student Loans: $402.79

Car Payment: $325.00

Life Payments: $1555.00

Total monthly payment: $3939.79

Total money into the bank (During monthly payments): $1517.29

Cost of Living (Increasing minimal monthly payments by 15%)

House

House initially costs $335,000.

The interest rate is 4.2958%

The payment lasts for 30 years.
There is an estimated monthly payment of $1657.00 minimally.

You end up paying $596,520.00 when paying $1657.00 monthly.


Increasing the monthly payment by 15%, the monthly payment will be $1905.55.

The payment now lasts for 278 months, or 23.16 years.

You end up paying $529,742.90.

You end up saving $66777.10 on the house.


Student Loans

There is $35,000 in student loans.

The interest rate is 6.80%.

The minimum payment monthly would be $402.79.

The student loans will be paid off in 10 years.

You end up paying $48,334.80 minimally.


Increasing the monthly payment by 15%, the monthly payment will be $463.21

The payment now lasts for 99 months, or 8.25 years.

You end up paying $45,857.79.

You end up saving $2477.01 on the student loans.


Life Needs and Wants Per Month (No Change)

Food: $500 a month.

Gas with the Car: $50 a month.

Car Insurance: $200 a month.

Going out with Friends: $120 a month.

Cell phone payment (already own one): $35 a month.

Water and Electricity bill: $150 a month.

Miscellaneous Items (shopping): $500 a month.

You end up paying around $1555.00 a month.


Total Payment Minimally Monthly

House payment: $1905.55

Student Loans: $463.21

Car Payment: $325.00

Life Payments: $1555.00

Total monthly payment: $4248.76

Total money into the bank (During monthly payments): $1208.32

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References

Muller, S. Trulia: Real Estate Listings, Homes For Sale, House Data. Retrieved from http://www.trulia.com/property/3215839891-7837-W-158th-St-Overland-Park-KS-66223