Jenny's First Home!

Finance Project-Hour:2-Stein

9302 Slater St, Overland Park, KS 66212

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Monthly Amount

Jenny's annual salary after taxes is $28,000, so her monthly salary after taxes is $2333.33. After subtracting out each of the following monthly necessities, the amount of money per month that she can spend on her house payment per month is $939.84.



  • Student Loans per month-$230.16 (A 200,000 dollar loan on a 6.8% interest rate and on a 10 year fixed rate)
  • Car Payment per month- $230
  • Food budget per month-$233.33 (10%)
  • Clothing budget per month-$116.67 (5%)
  • Savings for retirement per month- $233.33 (10%)
  • Entertainment budget per month- $116.67 (5%)
  • Monthly insurance-$233.33 (10%)


Total Amount & Minimum Amount

Using the present value equation for the total amount (listed below) the value of a house that she could afford would be $187638.11 (When using a 4.402% interest rate.) She chose to buy a home that costs $155,000 though just so that she can have some extra money in case of an emergency. Also, her realtor was able to settle a deal in which no down payment is necessary.


The minimum monthly payment is $776.36. (Found using the minimum payment equation listed below when the interest rate is a 4.402%.)


Increased Principle

When the minimum monthly payment ($776.36) is increased by 15%, the value payed per month increases to $1080.82.


When using this new monthly payment you would save 17 years and $117855.12. (equation listed below)

Increased Principle Equation

APA Citations

Wiley, S. (December 13, 2013). Zillow. Retrieved from http://www.zillow.com/homedetails/9302-Slater-St-Overland-Park-KS-66212/75683038_zpid/.

Wiley, S. (December 13, 2013). 9302 Slater St, Overland Park, KS 66212. Retrieved from http://www.zillow.com/homedetails/9302-Slater-St-Overland-Park-KS-66212/75683038_zpid/.

No Author. (January 1, 2014). Bank of America. Retrieved from https://www.bankofamerica.com/home-loans/mortgage/mortgage-payment-calculator.go.


EMILY SOUDER