# Brent's house

## How much he has to spend on a house

Annual Salary: 60,000

Subtract taxes: 60,000 - (60,000 x 3/10) = 42,000

Divide to monthly paycheck: 42,000/12 = 3,500

Subtract car payment: 3,500 - 450.00 = 3,050

Subtract gas: 3,050 - (assuming gas is at 3.85 a gallon and Brent drives a Hyundai Accent it will come out to be around 200.00) = 2,850

Subtract Food: 2,850 - (Brent is a vegetarian lowering his food costs to about 250.00 a month).= 2,600

Subtract miscellaneous: 2,600 - (Brent likes to save up to see his family every Christmas as well as a nice dinner with his new girlfriend, and he is saving up for retirement roughly 450.00 a month). = 2,150.00

Brent lives with his very successful doctor brother so he does not contribute any money to his home.

Brent has \$2,150.00 dollars he can spend a month on a house.

## Interest rate

RoundPoint interest company has a 4.500 interest rate for mortgages.

## increasing the minimum monthly payment by 15%

Time saved

(1,013.37 x (15/100)) + 1,013.37) = \$1,165.37

N=275.61

I%=.045

PV=200,000

PMT=1,165.37

P/Y=12

C/Y=12

275.61/12=23 years

30 years - 23 years = 7 years saved

Money Saved

(1,013.32 x 360) - (1,165.37 x 275.61) = \$43,625.57