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Math - Financial Plan

by Tara
(MS)











































analyze a financial plan

Develop a typical budget.

Prepare a budget for monthly living expenses, mortgage payments, and interest expenses.

Show the details of all calculations.

Clearly identify your answers.


1. Select the first three letters of your last name. Each letter has a numerical place value in the alphabet. For example, D is 4, L is 12, and Z is 26. Add the three place values together. For example, Thomas would yield THO, which is 20+8+15= 43

2. Multiply your sum by 1500. This is your yearly income for Week Four Discussion 1.

3. Please use the following monthly expenses: Car payment = $283.15, Car insurance = $72, Utilities (includes water and power) = $242.77, Internet = $32, and Cell Phone = $79.95.

4. You also have a yearly educational bill of $7980 which includes textbooks and classes.
5. Calculate your monthly income.

6. What percent of your monthly income is the car payment?

7. Subtract the sum of your monthly expenses. Use this value to calculate what percent of your income is now available to spend for food, clothing, and your rent or mortgage.

8. Use the plan at the bottom of page 454, “Mathematics in Our World Revisited,” to calculate the monthly mortgage payment established by your monthly income.

9. Assume you can afford a down payment equal to 25% of your yearly income. What is the total purchase price can you afford for a home? Would this amount allow you to purchase a home in the area where you live?


The first three letters of my last name is THO


Comments for Math - Financial Plan

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Jul 11, 2011
Financial Plan
by: Staff

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Part II

Monthly expenses:

Car payment = $283.15 per month
Car insurance = $72 per month
Utilities (includes water and power) = $242.77 per month
Internet = $32 per month
Cell Phone = $79.95 per month

Yearly educational bill (includes textbooks and classes): $7980
$7980/12 = $665 per month


Calculate your monthly income.

(Yearly income)/(12 months) = $64,500/(12 months) = $5,375 per month


What percent of your monthly income is the car payment?

[(Monthly car payment)/(Monthly income)] * 100 = % car payment

($283.15/$5,375)*100 = 5.26791%

The monthly car payment is 5.26791% of the monthly income


Subtract the sum of your monthly expenses.

$5,375 per month, monthly income

-$283.15 per month, Car payment
-$72 per month, Car insurance
-$242.77 per month, Utilities (includes water and power)
-$32 per month, Internet
-$79.95 per month, Cell Phone
--------------------------------------
$4665.13 per month (monthly income after monthly expenses, without educational expenses)

If educational expenses are included:

$4665.13 per month
-$665 per month, educational expenses
--------------------------------------
$4000.13 per month (monthly income after monthly expenses, including educational expenses)

---------

Calculate what percent of your income is now available to spend for food, clothing, and your rent or mortgage.

[(Monthly income after payments)/(Monthly income)] * 100 = % available

Without including educational expenses

($4665.13 /$5,375)*100 = 86.7931%

Available income is 86.7931% of the monthly income.


Including educational expenses

($4000.13 /$5,375)*100 = 72.5026%

Available income is 74.421% of the monthly income.


Assume you can afford a down payment equal to 25% of your yearly income.

$64,500 * .25 = $16,125 down payment


What is the total purchase price you can you afford for a home?

28% of gross monthly income = .28*$5,375 = $1,505

7.70x = $1,505

X = $1,505/7.70 = 195.455

195.455 *1000 = $195,455

$195,455 + $16,125 = $211,580

Can purchase a home costing about $211,580


Would this amount allow you to purchase a home in the area where you live?

Yes

According to zillow.com, there are over 200 homes currently for sale in Lake Charles, LA 70601. Many are listed for sale at less than $211,580.

http://www.zillow.com/homes/70601_rb/#/homes/for_sale/Bridge-Junction-Lake-Charles-LA-70601/88699_rid/pricea_sort/30.30063,-93.070018,30.183177,-93.385532_rect/11_zm/1_fr/






Thanks for writing.

Staff
www.solving-math-problems.com

Jul 11, 2011
Financial Plan
by: Staff


Part I

The question:


by Tara
(MS)

The purpose of this Discussion is to analyze a financial plan that portrays a somewhat typical budgeting scheme. You will calculate expenses, a mortgage payment, and the effects of interest and financing on your budget. Show your math work for every answer and identify the answers with words.

1. Select the first three letters of your last name. Each letter has a numerical place value in the alphabet. For example, D is 4, L is 12, and Z is 26. Add the three place values together. For example, Thomas would yield THO, which is 20+8+15= 43

2. Multiply your sum by 1500. This is your yearly income for Week Four Discussion 1.

3. Please use the following monthly expenses: Car payment = $283.15, Car insurance = $72, Utilities (includes water and power) = $242.77, Internet = $32, and Cell Phone = $79.95.

4. You also have a yearly educational bill of $7980 which includes textbooks and classes.
5. Calculate your monthly income.

6. What percent of your monthly income is the car payment?

7. Subtract the sum of your monthly expenses. Use this value to calculate what percent of your income is now available to spend for food, clothing, and your rent or mortgage.

8. Use the plan at the bottom of page 454, ?Mathematics in Our World Revisited,? to calculate the monthly mortgage payment established by your monthly income.

9. Assume you can afford a down payment equal to 25% of your yearly income. What is the total purchase price can you afford for a home? Would this amount allow you to purchase a home in the area where you live?


The first three letters of my last name is THO


The answer:

Select the first three letters of your last name. Add the three place values together.

THO

T (20th letter), H (8th letter), O (15th letter)

20+8+15 = 43

Multiply your sum by 1500.

43 * 1500 = 64500

Yearly income: $ 64,500
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Jul 11, 2011
Thank you!
by: Anonymous

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