# Finance Project-Scenario 1

## Calculations

Gross Income: \$50,000

After taxes (23%): \$38500

Monthly Income: \$3208.33

Rationale:

• Food: \$250
• Gas: \$50
• Utilities: \$350
• Cellular: \$50
• Clothes: \$200
• Retirement plan: \$150
• Car Payment: \$450
• Insurance: \$150
• Extra: \$100

Overall Rationale Price: \$1750

Income after Rationale: \$1458.33

30 Year fixed Interest Rate: 3.750% (https://capfed.com/rates/mortgage-rates)

Maximum to be Borrowed: \$314,895.47

I will borrow \$260,000 dollars from my bank in order to avoid going over my budget. If pay this amount off over 30 years with a monthly payment of \$1204.10, by the time I'm 54, I will have paid \$433,476.20 overall-- this means that I will have paid \$173,476.20 in interest. However, if I increase my monthly payments by 15% (paying \$1384.72 rather than \$1204.10) than I will be able to pay off my house in 17 years and four months (17.32 years). This means that I would be paying \$287,674.11 instead of paying \$433,476.20 , thus saving me \$145,802.10.

## Amortization Table

1. Payment
2. Principal
3. Interest
4. Total Interest
5. Balance
6. Month

\$5.58

\$1.81

\$3.76

\$3.76

\$1,202.29

January

\$5.58

\$1.82

\$3.76

\$7.52

\$1,200.47

February

\$5.58

\$1.82

\$3.75

\$11.27

\$1,q98.64

March

\$5.58

\$1.83

\$3.75

\$15.02

\$1,196.81

April

\$5.58

\$1.84

\$3.74

\$18.76

\$1,194.98

May

\$5.58

\$1.84

\$3.73

\$22.49

\$1,193.13

June

\$5.58

\$1.85

\$3.73

\$26.22

\$1,191.29

July

\$5.58

\$1.85

\$3.72

\$29.94

\$1,189.43

August

\$5.58

\$1.86

\$3.72

\$33.66

\$1,187.57

September

\$5.58

\$1.87

\$3.71

\$37.37

\$1,185.71

October

\$5.58

\$1.87

\$3.71

\$41.08

\$1,183.84

November

\$5.58

\$1.88

\$3.70

\$44.78

\$1,181.96

December