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

Wiley, S. (December 13, 2013). 9302 Slater St, Overland Park, KS 66212. Retrieved from

No Author. (January 1, 2014). Bank of America. Retrieved from