# Finance Project: Shalice Lott

### 13002 S AZTEC Circle Olathe KS, 66062

Harper has an annual salary of \$70,000. Thirty percent of that salary goes to taxes. As a result, Harper actually receives \$49,000 annually. She also has \$35,000 in student loans, and a car payment of \$325 per month. With all of these things accounted for, she was able to find a home that fits her financial situation. Within 3 months she was able to pay the down payment of this home.

## BREAKDOWN OF MONEY AVAILABLE

\$49,000 a year / 12 months = \$4,083.33 a month

\$4,083.33 - (\$402.78 [10 year Student Loan] + \$325 [Car Payment])= \$3,355.55 a month

## MONEY AVAILABLE WITH HOUSE PAYMENT INCLUDED

Since Harper waited 3 months to purchase her home, she accumulated \$10,665.65 as a result of her \$3,355.55 a month. From the \$10,665.65 she took 5% (\$7898.00) of it and put it towards her down payment for the home. After the down payment she then acquired a monthly payment towards her 30 year loan of \$157,950 which would fully pay off her house. The 30 year loan which was provided by Bank of America has a rate 4.625%. The minimum monthly payment would be \$812.08, the most that Harper would be willing to spend monthly on her house payment would be \$1,000.00 because she would like to put the remaining money towards other expenses.

\$812.08 X 15% increase = \$121.81

\$121.81 + \$812.08 = \$933.90

If \$933.90 was the monthly payment, it would take 22 years to pay off the loan. Which would save Harper \$45, 799.20.