Pre Calc Finance Project

By, Ben L (Stein, 4th Hour)


If Harper's annual income is $70,000 and she pays 30% to taxes, it was easy to find out that she is left with $49,000 per year. Now, to be reasonable I subtracted $6,000 from that total, which means she is allowed a little over $100 each week to spend on gas, groceries, etc. Next thing to take into account was her student loans. I determined that she needed to pay $402.78 each month to pay off her student loan in the ten year period. Now taking the $43,000 left, I divided it by 12 to get the amount Harper can pay each month in loans. This worked out to be about $3593.33 before accounting for the student loan payment or car payment, and $2855.55 after accounting for the student loan payments and car payments. This means Harper can afford a maximum monthly payment of $2855.55 per month on a home mortgage. Using this information, along with a reasonable rate based on 2013 national averages, I determined that Harper could spend up to $598,127.05 on a house of her choice.

The Home

12829 Catalina Street Leawood, KS 66209

The home Harper chose is well within her price range at $450,000. The interest rate on the home was a very reasonable 4%, meaning that on her 30 year loan, Harper will have to pay a monthly payment of $2,148.37. Therefore, after the 30 year period, Harper will have payed $773,413.20 on her mortgage. Not very appealing. However if she were to up her monthly payments by 15%, meaning she payed $2,470.63 per month, she would end up paying off her mortgage after about 23-and-a-half years. She would end up paying a total of $693,632.60. That means she would save $79,780.60 at the end of her mortgage period.

Works Cited

  1. Freddie-Mac. (2013, December). 30-year fixed-rate mortgages since 1971. Retrieved from
  2. Vanderweide, M. A. (n.d.). 12829 catalina street leawood, ks 66209. Retrieved from