| EXERCISE 2 |
| 1 |
| Interior designer |
| Starting Salary: $36,000 | $36,000 |
| Current Location: Savannah, GA ; Future Location: Atlanta, GA |
| Falcone, S. M. (2019). Designing Single-Family Residences: A Study of the Positive Impact of Interior Design in Creating New Home Value. Retrieved from https://work.chron.com/starting-salary-beginner-interior-designers-26624.html |
| Income Taxes Breakdown |
| | Tax Type | Marginal Tax Rate | Effective Tax Rate | Taxes |
| | Federal | 25.00% | 11.94% | $4,298 |
| | FICA | 7.65% | 7.65% | $2,754 |
| | State | 6.00% | 5.06% | $1,822 |
| | Local | 0.00% | 0.00% | $0 |
| | Total Income Taxes | | 24.65% | $8,874 |
| | Income After Taxes | | | $27,126 |
| Federal Income Tax Plus FICA : =$7,052 | 19.59% |
| Monthly income: =$2260.5 | $2,260.50 |
| 2&3&4 | detailing each month’s income and expenses |
| Apartment in Savannah | Monthly Expenses |
| | Rent | $500 |
| $500/ mo | Food | $375 |
| | Internet | $90 |
| 1 bed | Gas | $250 |
| 1 bath | Utilities | $130 |
| 2408 sqft | Health Insurance | $440 |
| Downpayment: $150.50 | Car Insurance | $125 |
| | Spending | $135 |
| Zillow, Inc., & Zillow, Inc. (n.d.). Ayla Apartment Rentals - Georgia, GA. Retrieved July 19, 2019, from https://www.zillow.com/b/ayla-atlanta-ga-65XDqb/ | Cell Phone | $55 | $2,100 |
| | Savings | $160.50 |
| 5 |
| Future Condo After Apartment (Atlanta) |
| Condo Price $99900 |
| D'Lima, W., & Schultz, P. H. (2019). Residential Real Estate Investments and Investor Characteristics. Available at SSRN 3458175. Retrieved October,12, 2019, from https://www.zillow.com/savannah-ga/ |
| | 30 Year Fixed | | 15 Year Fixed |
| | Down Payment 20% | $19,980 | Down Payment 20% | $19,980 |
| | RATE | 3.25% | RATE | 3.99% |
| | APR | 3.42% | APR | 3.15% |
| | MO. PAYMENT | $1,184 | MO. PAYMENT | $521 |
| | CREDIT | $428 | LENDER FEES | $334 |
| Zillow, Inc. (n.d.). Get Customized Loan Quotes From Zillow. Retrieved October,12, 2019, from https://www.zillow.com/mortgage-rates/quotes/?auto=true&loantype=purchase&zip=26201&value=332900&cscore=720-739&va=true&type=SingleFamilyHome&use=Primary&down=60000#request=ZR-QHQBSYKW |
| 11 Years (at the very least) To Save For A Down Payment | Monthly Expenses | 15 Year Fixed |
| Savings A Month: $160.50 | Monthly Payment | $521 |
| $160.50 x 12= $1926 | Food | $375 |
| 1926 | Internet | $90 |
| Savings A Year: $1926 | Gas | $250 |
| $1926x 12= 23112 | Utilities | $130 |
| Fees depend on loan. For this instance, I chose a 15 year fixed loan. So, the extra fee, in addition to the down payment, would be $334. | Health Insurance (estimated) | $440 |
| | Car Insurance | $125 |
| | Spending | $135 |
| | Cell Phone | $55 |
| | HOA | $0.00 |
| | Savings | $140 |
| Current Location: Savannah, GA ; Future Location: Atlanta, GA |
| Please find an apartment in Savannah , and a future home in Atlanta |
Vincent666
mathaccountinghw.xlsx
