This project was able to give me insight into how finance works in the real world

and gave me a chance to use real life applications in order to further my understanding.

The finance module was able to take a subject that many people struggle with

throughout life and break it down to an easier understanding. This module was able to

give me the knowledge of the impact of financial decisions and it gave me the formulas

to be able to solve financial questions as well.

A conclusion that I have drawn from this project is that it is important to know

your interest rate and shop around for the lowest one when buying a house. In many of

our exercises, the interest rate had a large impact on how much total money someone

would end up paying on a loan. Another conclusion that I took away from the project

was that buying a house pays off more in the long run than renting. While renting,

someone isn’t investing their money and they also have the burden of a landlord raising

their rent payments. When you buy, you invest and it pays off in the end. The last

conclusion that I drew from this project is that a 30 year mortgage is very different from

a 15 year mortgage. Someone will end up paying more in their monthly payments but

less on interest in a 15 year mortgage, while in a 30 year mortgage they will pay less in

their monthly payments and more interest over time. However, I learned that although

each has their benefit, it is ultimately up to the buyer to decide what is right for them.

Knowledge of financial formulas are important for a person to make smart,

impactful, and long-lasting decisions when it comes to finance. Home buying is a great

example of why knowing financial formulas can be beneficial in life. Retirement is

another example since formulas are able to help people know exactly the amount of
money they need to put away throughout their life so that they will be comfortable in

retirement. It is important to have knowledge of these formulas when making financial

life decisions.