MAT190 Finance Project

Source_________________________ (Submit a copy of internet job opportunity)

Monthly take-home pay_______________________

(Take your salary, divide by 12 and subtract 30% for taxes, medical, etc.)

Show your work here:

2. Apartment: You will be renting an apartment in the same area as your job. The apartment will have at least 1 bedroom, bathroom, living area, and a kitchen area. Include a picture and information concerning the apartment with this project.

Rent: ________________________

Source_________________________ (Submit a copy of internet apartment info)

Apartment insurance is $40 per month.

3. Annuity: You decide to start saving for a down payment on the purchase of a house in five years. The bank requires 20% down on a home loan. Include picture and information concerning your house.

Source_________________________ (Submit a copy of internet house search info)

House Cost_______________________

20% down payment_________________

Monthly payment on annuity of down payment: 5 years at 5% interest _________

Show the formula used and calculation:

4. Loan from a relative: You borrowed $1000 from a relative for all those unexpected expenses. You promised to pay it back with 4% simple interest over 2 years. If you pay him/her equal monthly payments over the next 2 years, what is your monthly payment?

Show the formula used and calculations:

5. Savings Account: You know that sometimes unexpected expenses come up. You decide to put $100 per month into an account at 4.5% interest compounded monthly. How much money will you have in the account at the end of 5 years?

Show the formula and calculations:

6. Transportation: Your car is on its last leg. The dealer offers you $1000 which you will use as a down payment on a new vehicle or a used one (that is in very good condition). You must use the following rates:

new 7% interest rate over 5 years or less

used 8% interest rate over 5 years (for up to 2 years old)

10% interest rate over 4 years (for over 2 years old)

Include a picture and information concerning the car/truck with this project.

Type of car____________________ Age of vehicle ________

Cost of car ________________ Length of loan _________ Rate: _________

Monthly payment_________________

Monthly insurance cost_______________

(Use the internet to search for insurance for your selected vehicle’s make/model/year)

Monthly estimate of gas and upkeep___________________

(Note: the older the car, the more the upkeep)

Payment formula and calculation:

7. Survival or Starvation: Now that you are totally living on your own, you can no longer rely on Mom’s home cooking or the fantastic cafeteria food. It is time to plan a weekly menu and a shopping list for the week. Include the shopping list and prices with your final project. Note: Since you now have a full-time job, you are not likely going to eat ramen or peanut butter and jelly for every meal.

List groceries items and cost (for the month for longer lasting items) below. You may also list items and cost in a spreadsheet.

Total Cost of grocery items

8. Supplies for apartment: List all the cleaning supplies, cooking equipment, bathroom supplies, etc. that you will need to start living in your apartment. Do not include furniture. The final project should include the costs of these items. A few suggestions are given to get you started

Use a separate sheet of paper if more space is needed. You may also use a spreadsheet.

Total the cleaning supplies that you will need to purchase each month: ______________

9. Monthly Expenses:

Total: _______________

10. Comparison

Compare your Total Monthly Expenses and your Monthly take-home pay.

Which is larger? _______________________

How much larger? _____________________

11. Executive Summary – limit 1 page, typed and double-spaced, 12 point font.

Start the summary discussing your future goals both professionally and personally. Next, discuss the budget you just completed. Be sure to mention if your expenses or take-home pay is larger and by how much. If your expenses exceed your pay or were within $100, discuss the changes you can make to decrease your expenses. Be specific. Give enough changes to make your pay at least $150 more than your expenses. If your pay is larger than your expenses, give at least two ideas on what you will do with the extra money at the end of the month. If you expect another income to help with expenses or have any other expenses that were not mentioned in this project, state them in the summary. Also, mention if something put in the budget does not fit you and why.