Pre-Calc Finance Project

Sebastian McCarty Hour 1


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.


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

Big image

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.

Big image

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

Create a Pie Chart. (n.d.). Retrieved December 10, 2015, from

Kansas Car Insurance. (n.d.). Retrieved December 10, 2015, from

Overland Park KS Real Estate Zillow. (2015, November 21). Retrieved December 10, 2015, from

Today's Mortgage Rates and Refinance Rates. (2015, December 9). Retrieved December 10, 2015, from

Vuoi vendicarti? Usa Facebook. (2012, May 21). Retrieved December 10, 2015, from

Writer, S. (2011, April 20). Average Utility Costs Per Month: What’s Normal? Retrieved December 10, 2015, from