Future Projected

Cailynn Thomas
Finite Math
Period 6
1/24/17

 Dream Job

Teacher :Teachersaretheoneswhomoldthechildrenintowhat
theywillbecomesomeday.

Salary:57,000$peryear

Educationrequired:Bachelorsdegree

 Dream Car

Make:Jeep

Model:Wrangler

Year:2017

Cost:30,000$

 Dream House

Type: Italian 1 story

Location: 35136 Painted Rock Street Winchester, CA

92596

Bedrooms: four

Bathrooms: three

Square Feet: 2,560

Cost: Starting at 429,900

Annuities: Retirement

If I save $1,200.00 per year in my savings account,

noting that I am in the 28% marginal bracket my net
yield is .72(8) = 5.76%.

After 20 years I will have $43,020.59 in my savings

account.

If I save $1,200.00 per year in my IRA account and

I'm in the 28% marginal tax bracket then my net
yield is 8%.

After 20 years I will have $54,914.35.

Annuities: Savings and IRA

I would earn $19,020.59 interest after investing

$1,200 per year in my savings account.

I would earn $30,914.35 interest after investing

$1,200 per year into an IRA account and after tax
withdrawal.

My dream car is Jeep Wrangler Unlimited. Cost is $30,000

At the end of each year I will be paying $11,641.00 to amortize the loan at the end of 3 years.

End of Period

Interest
Charged

Repayment
Made

Payment
Toward
Principal

Outstanding
Principal
30,000

2400

11,641.00

9241

20,759

1,660.72

11,641.00

9980.28

10,778.72

862.2976

11,641.00

10778.7024

0.01

At the end of each year I will be paying $7,513.69 to

amortize the loan at the end of 5 years.

End of Period

Interest
Charged

Repayment
Made

Payment
Toward
Principal

Outstanding
Principal
30,000.00

2400

7,513.69

5,113.69

24,886.31

1,990.9048

7,513.69

5,522.7852

19,363.5248

1,549.081984

7,513,69

5,964.608016

13,398.916784

1,071.9133427
2

7,513.69

6,441.7766577
8

6,957.1401262
2

556.571210097 7,513.69
6

6,957.1187899
024

0.02

At the end of each year I will be paying$5,611.04 to amortize the

loan at the end of 7 years
End of period

Interest Charged

Repayment Made

Principal Toward
Principal

Outstanding
Principal
30,000.00

2,279.61

5,611.04

3,331.43

26,668.57

2,003.10

5,611.04

3,607.94

23.060.63

1,703.64

5,611.04

3,907.40

19,153.23

1,379.33

5,611.04

4,231.71

14,921.53

1,028.10

5,611.04

4,582.94

10,338.59

647.72

5,611.04

4,963.32

5,375.27

235.77

5,611.04

5,375.27

0.00

Car Loan
My

dream car is a Jeep Wrangler Unlimited which cost

$30,000.

In

order to afford this car I will borrow money from the

bank. The bank gives me 8% interest rate on unpaid
balance charged monthly.

At

the end of 5 years the monthly payment would be

$608.29

Amortize: cost of home

My Dream Home cost $429,900

Interest Rate: 5.4

Monthly Payments for 30 years: 2,414.02

Affordability

Monthly affordable home payment: $1,900

Making that payment on a loan for 30 years with a

interest rate of 5.4 means I can afford: $338,360.78
loan on a house

I cannot afford my dream house because the cost

exceeds the loan amount.