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Math Analysis CPFinance ProjectNames: ____________________________________________________________________________________________________Period: ______________Due Date: Monday, May 13, 2019Score: _______/70For this project, you will create a budget to approximate your monthly income and expenses after you graduate from college. You will get to choose what college to attend, what career you want, what car you will drive and where you want to live. Ideally, your “Real Life” expenses will not exceed your income. Good luck!220980010858500Note: You will be using various websites to obtain price information. You should not give any personal information (name, location, email address) on these sites.Finance ProjectCollege WorksheetComplete name of college (no abbreviations) you wish to attend:____________________________________________________________________________________________ Complete the table below with the current cost of college expenses. You may obtain this information from bigfuture. . Click on “College Planning” and then look up your college by name and select “Paying.”TuitionCost information is for the year ________Room and Board (meals) Where will you live? ______________Books and suppliesPersonal expenses (movies, clothes, laundry, and transportation)Total Cost What year will you begin college? __________Use 3% inflation (compounded continuously) for each year to calculate the cost of each year of college and then the total cost. Show numeric substitution into formulas. Year 1Year 2 Year 3Year 4TOTALWith the help of your family, you can pay $15,000 each year outright towards your college expenses. You must take out a loan for the remaining amount.The amount of your loan will be .You will begin paying off your college loan after you graduate. Your college loan will be for 10 years with an interest rate of 5% compounded monthly. Calculate the amount of your monthly payment for your loan. Show the numeric values for each of the FINANCE APP variables.Your monthly college loan payment is .The total amount of interest you will pay is . Show your work:Finance Project Automobile WorksheetAfter you finish college, you will need a car to get to and from work. Money will be a bit scarce at first, so you will purchase a Used car. What Make, Model and Year of car will you purchase?Make, model and year of your car: _____________________Use the Kelly Blue Book website: to price your car. Click on “Car Values” and select “Used Car.” Select specific details for your car.Kelly Blue Book Value: _____Amount of down payment you can afford: Where will the money for your down payment come from? Write in complete sentences.Amount you will need to finance: You must take out a loan to finance your car.Your car loan will be for 5 years with an interest rate of 6.5% compounded monthly. Calculate the amount of your monthly payment for your loan. Show the numeric values for each of the Finance APP variables.Your monthly car payment is: The total amount of interest you will pay is . Show your work:Estimated monthly cost of car insurance: ______________Give Website/reference: _______________Estimated number of miles you will drive per month: ________________________Estimated monthly cost of gasoline (show calculation): _____________________ Estimated monthly upkeep of car: _____________________Give website/reference: ___Finance ProjectHouse WorksheetAfter you graduate college, you will need a place to live. You are tired of living in college dormitories, and have decided to purchase a home or condominium. Where would you like to live?Location of your house/condo: __Use to find the price of a home in your desired location.Price for a home/condo: Description of home/condo: ______________________________________________________You need a down payment of 20% to purchase your first home. How will you get the money?_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________You will need to finance 80% of the cost of your home.The amount you need to finance is Your house loan will be for 30 years with an interest rate of 4.5% compounded monthly. Calculate the amount of your monthly payment for your loan. Show the numeric values for each of the FINANCE APP variables.Your monthly house payment is The total amount of interest you will pay (show your work). __________________Estimated monthly cost of home owners’ insurance: _____List website reference: Estimated monthly cost of utilities: List the reference used: Estimated monthly upkeep/repairs: ___________List the reference used: Yearly Property tax is 1% of the purchase price. Your estimated monthly property tax Finance ProjectRetirement WorksheetYou will need to save money each month for your retirement. Your financial planner suggests that you should have $1,000,000 in retirement savings. Suppose you will retire at age 65 and assume you will earn 8.5% compounded monthly on your savings. Calculate the amount of your monthly contribution into your savings for retirement if you begin saving at age 25, 35, 45 and 55. Show the numeric values for each of the FINANCE APP variables. Also calculate your contribution and the amount of interest you have earnedAge you begin savingMonthly contributionYour total contributionTotal interest earned25 years old35 years old45 years old55 years oldExplain why it is important to begin saving for retirement as early as possible:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Finance ProjectCareer WorksheetAs you can see, you will have a lot of expenses once you begin “Real Life.” So, you are going to need a job!!!Go to Once at the site click on “Explore Industry Sectors.” You may select a specific occupation or use the average wage for the entire sector.Your career: Average annual salary in your career: _____Average monthly salary (before taxes): Unfortunately, you don’t get to take home all of that salary because you have to pay taxes. How much you pay in taxes depends on how much you earn. The current Federal Income Tax Brackets for an individual filing singly are shown below. Being?“in” a tax bracket doesn’t mean you pay?that federal income tax rate?on everything you make, just on the income within that bracket. For example, a person earning taxable income of $35,000 pays 10% on the first $9,525 and then 12% on the remaining $25,475. Your “taxable income” is your annual salary minus a standard personal exemption of $12,000. Calculate your annual Federal Income tax. Show your work.Tax RateTaxable Income Bracket10%$0 to $9,52512%$9,526 to $38,70022%$38,701 to $82,50024%$82,501 to $157,50032%$157,501 to $200,00035%$200,001 to $500,00037%$500,001 or moreAnnual Federal Income Tax ______________________Your effective federal tax rate is the annual tax that you pay divided by your income. What is your effective federal tax rate? ________________________ In addition to federal income tax, you will also need to pay a FICA tax for your Social Security and Medicare benefits. And you will probably need to pay State and Local taxes. Assume the effective tax rates given in the table below and calculate your annual and monthly taxes.Annual taxesMonthly taxesFederal Tax7.6% FICA Tax 10% StateTax1% County/CityTax TOTAL TAXESFinance ProjectMonthly Budget WorksheetMONTHLY EXPENSESTaxes on incomeCollege loan paymentCar loan paymentCar InsuranceGas and other car expensesMortgage (house payment)Property TaxOther house expenses (utilities,repairs and insurance)Savings for retirementFoodClothesPhone/Internet/CableOther Expenses (List three):TOTAL MONTHLY EXPENSESAVERAGE MONTHLY INCOMEINCOME – EXPENSESDo you earn enough money to pay all your bills? If not, what can you do about it? ____Finance ProjectCredit Cards Worksheet – Extra Credit (5 points)Will credit cards help? The average 24-35 year-old in the U.S. has $4315 in credit card debt. Suppose you have a credit card with a balance of $4315 and an annual interest rate of 19.8%. The minimum payment is $75 each month. The amount of interest due each month is figured as where r is the rate (decimal form) and n is 12.Microsoft Excel or Google Sheets are spreadsheet programs that allows you to use formulas and run a certain calculation over and over, using the answers from a previous calculation (remember recursion?).A formula in Excel or Google Sheets always begins with an equals sign. By beginning with the equals sign, the program will know to execute a certain procedure based off of the information typed. Look in the table below at the cell for Month 1 Interest. The formula "=B2*.198/12" will take the amount in cell B2 (currently $4315) and multiply the value by .198/12. Once you type in the formula and press enter, the calculated value will appear in the spreadsheet, but you can still see the formula in the entry line above the spreadsheet.Copy the columns below into a spreadsheet. Note that the gray highlighted values are already part of the document.ABCDEF 1MonthCurrent BalanceInterestPaymentAmount applied to principalEnding Balance21$4315=B2*.198/12$75=D2-C2=B2-E232=F2=B3*.198/12=D2=D3-C3=B3-E3If done correctly, your spreadsheet should now look like this (You may need to change the format of your numbers to “currency.”Now we want to apply the formulas consistently for a large section. To do that, highlight cells A3 through F3 (the third row in your data chart). Notice that the section you highlighted is bordered by a thick rectangle. In the very bottom-right of that rectangle is a black square. When you hover your curser over the square, your cursor changes from a large white + to a black + sign. Click that while your cursor is a black +, hold it, and drag down a couple of rows.As you do this, you are taking the formulas and applying them to corresponding cells. For example, if you look in cell F4, you will find "=B4-E4", the same formula as F3, except it automatically applied it to the cells in row 4. According to your spreadsheet, what is the ending balance after one year?___________________________________Will you ever be out of debt with the credit card company? When? _________________________________________Explain why it takes so long to pay your debt.: Once the formulas are set-up, you can try changing some values. For example, change D2 (the monthly payment) to something like $100. Notice how long it takes to get out of debt with varying payment amounts.What monthly payment will get you out of debt in three years? Print and attach a copy of your spreadsheet showing your answer.Use the Finance App to verify your result. Show the numeric values for each variable. ................
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