Occupation:



FINANCE PROJECT

Pre-AP Precalculus

I. COLLEGE AND CAREER CHOICES

(a) Desired Career (explain why you chose this career):

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Degree(s) and College Major Required:

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(b) Preferred College or University:

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Total Cost for College (for all 4, 6, or 8 years):

(c) Use the correct annuity formula.

This applies to the entire project.

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My parents would have to have saved per month since I was

born in order to have enough money for the total cost of my college education.

(( Suppose instead of investing in an annuity when you were born, your parents simply

deposited $5000 in a Certificate of Deposit and did not make any additional deposits

to this account. Assume that the APR was 3.2% compounded monthly.

What is the APY? How much would the account be worth in 18

years when you are ready to attend college?

II. COLLEGE FINANCING and BUDGETING

(a) Scholarships (Insert an additional page if needed)

1. Name of Scholarship:

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Necessary qualifications:

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Amount Awarded: (Indicate if this amount will be awarded once, every year, every semester, etc.)

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Application Due Date:

2. Name of Scholarship:

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Necessary qualifications:

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Amount Awarded: (Indicate if this amount will be awarded once, every year, every semester, etc.)

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Application Due Date:

|Total cost of college/university education: | $ |

|Total Scholarship Money Awarded: | – $ |

|Difference (this is how much you will need to | $ |

|borrow in student loans) | |

(b) PROJECTED SALARY AND MONTHLY BUDGET

Occupation:

City in which you will reside:

Yearly Salary Range:

Your Estimated Entry-Level yearly Salary:

Your estimated MONTHLY take-home pay:

(This is your NET monthly income)

Expenses:

|EXPENSE (required) |AMOUNT |

|Rent |$ |

|Utilities |$ |

|Food |$ |

|Auto Insurance, if applicable |$ |

|Fuel or Cost of Public Transportation |$ |

|Cell phone |$ |

|Other (optional) Budget Items might include the following, but are not limited to... |

|Cable or Satellite TV |$ |

|Internet Service |$ |

|Savings |$ |

|Entertainment |$ |

|Purchases (clothes, furniture, etc.) |$ |

|Charitable Contributions |$ |

Add additional rows if needed.

|Net Monthly Income |$ |

|Subtract Total Monthly Expenditures |$ |

|Money Available for Student Loan Payments |$ |

(c) STUDENT LOANS Total amount to be financed after Scholarships:

1. Name of Loan:

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Stipulations of loan:

Interest is compounded

I will have to start repaying this loan months after graduation.

Length of time the lender will allow me to pay off the loan balance in full:

Other stipulations, if any:

Monthly Payments

What would your monthly payments be if you

plan to pay off the loan in just five years?

Compute using the appropriate finance formula

2. Name of Loan:

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Stipulations of loan:

Interest is compounded

I will have to start repaying this loan months after graduation.

Length of time the lender will allow me to pay off the loan balance in full:

Other stipulations, if any:

Monthly Payments

What would your monthly payments be if you

plan to pay off the loan in just five years?

Compute using the appropriate finance formula

III. LIFE AS A THIRTY-SOMETHING . . .

(a) Estimated annual salary at age 30:

Net monthly income:

Discussion (as described in the handout):

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(b) RETIREMENT:

Monthly payment required to realize a future value of

$1,200,000 at age 65, if you started saving at age 30:

Monthly payment required to realize a future value of

$1,200,000 at age 65, if you started saving at age 40:

(c) TIME FOR A NEW CAR!

What kind of car would you like to buy? Insert picture, description, and price.

(( Amount I need to borrow:

For that particular model, based on today’s rates, fill in the following:

|Annual Interest Rate (APR) |

|36-month loan: |48-month loan: |60-month loan: |

|% |% |% |

| Compounding periods per year: | Compounding periods per year: | Compounding periods per year: |

| Monthly Payment: $ | Monthly Payment: $ | Monthly Payment: $ |

(d) HOUSE HUNTING . . .

What kind of home would you like to buy? Insert picture, description, and price.

|Price of Home: | $ | % down payment = $ |

|Amount to Finance: | $ |

|Annual Interest Rate (APR) |

|15-Year Mortgage: |30-Year Mortgage: |

|% |% |

| Compounding periods per year: | Compounding periods per year: |

| Monthly Payment: $ | Monthly Payment: $ |

|Interest Paid over the term of the loan: |Interest Paid over the term of the loan: |

|$ |$ |

|Total paid over the term of the loan: |Total paid over the term of the loan: |

|$ |$ |

| If I take out a 30-year mortgage, I will end up | |

|paying this much more than I would for a |$ |

|15-year mortgage over the term of the loan: | |

|Calculations: |

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| | |

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|Which option will you choose? Or, will you continue to rent? Explain . . . |

Bonus (optional):

IV. CONCLUSION:

(List works cited on next page)

IV. WORKS CITED:

-----------------------

Period:

$

$

$

$

$

$

$

$

$

Name:

Date:

Interest Rate (%)

Amount Financed

Show calculations below

$

Show calculations below

$

$

$

Show work (substituting correct values for the variables).

Include tuition, Room & Board, various fees.

If you had to choose just ONE of the two loans you detailed on the previous page, which loan would you choose and why?

Compute using the appropriate finance formula, in the space below, assuming that you will take the maximum allowable time to pay off the loan.

$

Interest Rate (%)

Amount Financed

Compute using the appropriate finance formula, in the space below, assuming that you will take the maximum allowable time to pay off the loan.

$

$

Explain / Discuss (as described in the handout):

$

Cost of car minus

down payment = $

Show calculations below:

36-month loan:

48-month loan:

60-month loan:

Explain / Discuss (see handout):

|Date Turned In | |

|Did you include a visual display? | |

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