Week Four Discussion 1
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.
- 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, Wallace would yield WAL, which is 23+1+12 = 36.
- Multiply your sum by 1500. This is your yearly income for Week Four Discussion 1.
- 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.
- You also have a yearly educational bill of $7980 which includes textbooks and classes.
- Calculate your monthly income.
- What percent of your monthly income is the car payment?
- 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.
- Use the plan at the bottom of page 538, â€œMathematics in Our World Revisited,â€ to calculate the monthly mortgage payment established by your monthly income.
- 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?