# Finance Project

### Allison Davis-hour 5

## Brent the Construction Foreman: Scenario 1

Brent wants to purchase his first home. His annual salary is $60,000 but after you take out taxes he has $42,000 per year. I then divided the salary by 12 to see how much he has per month. The total was $3500. But since Brent has a car payment of $450 per month I subtracted the $450 from $3500. So in the end Brent has $3050 each month.

I asked my parents and they said that he needed about $1,500 dollars for himself each month for clothing food, and other materials.

I found the rate on Wells Fargo.com on December 15, 2013. The rate I used was 4.750%

The result of the equation is Brent would have to pay $1017.21 per month.

The first equation is the amount of money he would be paying if he decided with the minimum payment approach.

The second equation is the amount of money he would be paying if he decided to increase the payment per month by 15%.

*Wells Fargo.*Retrieved from https://www.wellsfargo.com/mortgage/rates/?dm=DMIWFHPRAT.

Maher, S. (2013, December 15). *Zillow. *Retrieved from http://www.zillow.com/homedetails/1236-N-Prince-Edward-Is-Olathe-KS-66061/75614085_zpid/.