# Pre-Calc Finance Project

## Jenny

Jenny went to college for 2 years, and then dropped out. Unfortunately, by the time she dropped out of college, she had \$20,000 in student loans with an interest rate of 6.80%. She has been working as a bank teller for the last 3 years. Her salary is \$30,000. She also has a car payment of \$400 per month. She is excited to buy her first home.

## Logistics

Salary: \$30,000

Student Loans: \$20,000

Car Payment: \$400 per month

After she takes 30% of her salary for taxes she's left with: \$21,000

Per-Month Spending: \$1,750

## Student Loan

Student Loan has to be paid off within 10 years therefore she needs to pay \$230.16 per month to pay off the loan.

## Monthly Budget

Student Loan: \$230.16

Car Insurance: \$83.33

Food: \$289.56

Gas/Transportation: \$460

Entertainment/Other/Netflix: \$108

Cell-Phone: \$75

Utilities: \$160

Total Monthly Expenses: \$1,406.05

Budget Left For House: \$343.95

## What Jenny Can Afford For A House

Jenny can afford a house that is worth \$70,971.27.

Jenny found a beautiful, sufficient house that is only worth \$53,500. With the house being cheaper than what she can actually afford, she will have a good amount of money left over.

## Monthly House Payment/Interest

With the house being \$53,500 and paying it off over the course of 30 years, Jenny will have a monthly house payment of \$259.28.

However with an interest rate of 4.125%, over time she will actually pay \$93,340.80. A difference of \$38,340.80 from the original cost.

## Monthly Payment Increase of 15%

Jenny's new monthly payment will be \$298.17.

With an increase of \$38.89 towards the monthly payment, Jenny will be able to pay off the house in 11 years and 8 months instead of 30 years.

The total difference in the amount paid would be: \$51,595.81.

## Works Cited

Average Food Cost Per Month For 1 Person. (n.d.). Retrieved December 10, 2015, from http://loweryourspending.com/average-food-cost-per-month-for-1-person.html

Create a Pie Chart. (n.d.). Retrieved December 10, 2015, from https://www.meta-chart.com/pie

Kansas Car Insurance. (n.d.). Retrieved December 10, 2015, from http://www.carinsurance.com/state/Kansas-car-insurance.aspx

Overland Park KS Real Estate Zillow. (2015, November 21). Retrieved December 10, 2015, from http://www.zillow.com/homes/for_sale/Overland-Park-KS/

Today's Mortgage Rates and Refinance Rates. (2015, December 9). Retrieved December 10, 2015, from https://www.wellsfargo.com/mortgage/rates/

Vuoi vendicarti? Usa Facebook. (2012, May 21). Retrieved December 10, 2015, from http://www.notizieshock.net/vuoi-vendicarti-usa-facebook/

Writer, S. (2011, April 20). Average Utility Costs Per Month: What’s Normal? Retrieved December 10, 2015, from http://ohmyapt.apartmentratings.com/breaking-down-the-average-utility-costs-per-month-whats-normal.html