As an Ivy Tech student, you are making an investment in your education. This project will...

  

 

Transcribed Image Text:

As an Ivy Tech student, you are making an investment in your education. This project will look at how hat investment will pay off if you graduate and get a job in your desired field. The median annual income for a high school graduate is $28,025. This is the value that you will be omparing your expected salary and lifestyle to in the following areas: 1.) Income Comparison: Research your expected income after you graduate college. Assume you obtain whatever level of education needed to enter your desired area of employment and that you will have a salary equivalent to the annual Median salary found at: http://www.bls.gov/oes/current/oes in.htm# 27-0000 *You will need to click on your desired career in order to see the Annual Median wage. Your response should explain what your desired area of employment is and what the median annual salary for that position is. Your response should contain at least one statement comparing your expected salary with that of the median income of a high school graduate. 2.) Housing Comparison: Current 30 year mortgage rates are at 4.15% and a good rule of thumb is to spend no more than 25% of your gross income on house payments (Note: We are using a different formula here than the 'Total Expense Ratio' in the book, so you will not need to know ant could be bought 2.) Housing Comparison: Current 30 year mortgage rates are at 4.15%) and a good rule of thumb is to spend no more than 25% of your gross income on house payments (Note: We are using a different formula here than the 'Total Expense Ratio' in the book, so you will not need to know tax and other info). Use Excel to determine the largest value of a house that could be bought using a 30-year mortgage at 4.15% with payments that are 25% of the gross monthly income for someone with only a high school diploma and then do the same calculation using your expected salary. Also, assume 3.95% interest on a 15-year mortgage, and calculate the largest value of house that could be afforded under this type of mortgage. Make a couple statements comparing your findings. Use Excel to create an amortization table for ONE of the following: a 30 year mortgage with your anticipated income, a 15 year mortgage with your anticipated income, a 30 year mortgage for someone with the income of a high school graduate, and a 15 year mortgage for someone the income of a high school graduate. Highlight the tenth year of the amortization table. How much of the loan have you paid off after 10 years? (This is related to the idea of home equity, which is the current value of the home minus the amount owed on the home. Note that you build equity more quickly with a 15-year mortgage, because more of each payment goes toward repaying the principal.) Calculate the total price of each home. How er interest is paid? (We are ignoring other closing costs that in reality we would have 0 0.039 .041 each payment goes toward repaying the principal.) much more interest is paid? (We are ignoring other closing costs that in reality we would have to pay.) Your response should contain at least one statement comparing the value of the house that a high school graduate can afford and that you expect to be able to afford for each type of mortgage. Clearly label the amortization table in Excel. Make sure you have highlighted the tenth year in the amortization table. Your response should contain at least one statement comparing the total price of the 30 year mortga with the total price of the 15 year mortgage for BOTH your expected salary, and that of a high school graduate. Be prepared to explain in your response what Excel function was used for these calculations. As an Ivy Tech student, you are making an investment in your education. This project will look at how hat investment will pay off if you graduate and get a job in your desired field. The median annual income for a high school graduate is $28,025. This is the value that you will be omparing your expected salary and lifestyle to in the following areas: 1.) Income Comparison: Research your expected income after you graduate college. Assume you obtain whatever level of education needed to enter your desired area of employment and that you will have a salary equivalent to the annual Median salary found at: http://www.bls.gov/oes/current/oes in.htm# 27-0000 *You will need to click on your desired career in order to see the Annual Median wage. Your response should explain what your desired area of employment is and what the median annual salary for that position is. Your response should contain at least one statement comparing your expected salary with that of the median income of a high school graduate. 2.) Housing Comparison: Current 30 year mortgage rates are at 4.15% and a good rule of thumb is to spend no more than 25% of your gross income on house payments (Note: We are using a different formula here than the 'Total Expense Ratio' in the book, so you will not need to know ant could be bought 2.) Housing Comparison: Current 30 year mortgage rates are at 4.15%) and a good rule of thumb is to spend no more than 25% of your gross income on house payments (Note: We are using a different formula here than the 'Total Expense Ratio' in the book, so you will not need to know tax and other info). Use Excel to determine the largest value of a house that could be bought using a 30-year mortgage at 4.15% with payments that are 25% of the gross monthly income for someone with only a high school diploma and then do the same calculation using your expected salary. Also, assume 3.95% interest on a 15-year mortgage, and calculate the largest value of house that could be afforded under this type of mortgage. Make a couple statements comparing your findings. Use Excel to create an amortization table for ONE of the following: a 30 year mortgage with your anticipated income, a 15 year mortgage with your anticipated income, a 30 year mortgage for someone with the income of a high school graduate, and a 15 year mortgage for someone the income of a high school graduate. Highlight the tenth year of the amortization table. How much of the loan have you paid off after 10 years? (This is related to the idea of home equity, which is the current value of the home minus the amount owed on the home. Note that you build equity more quickly with a 15-year mortgage, because more of each payment goes toward repaying the principal.) Calculate the total price of each home. How er interest is paid? (We are ignoring other closing costs that in reality we would have 0 0.039 .041 each payment goes toward repaying the principal.) much more interest is paid? (We are ignoring other closing costs that in reality we would have to pay.) Your response should contain at least one statement comparing the value of the house that a high school graduate can afford and that you expect to be able to afford for each type of mortgage. Clearly label the amortization table in Excel. Make sure you have highlighted the tenth year in the amortization table. Your response should contain at least one statement comparing the total price of the 30 year mortga with the total price of the 15 year mortgage for BOTH your expected salary, and that of a high school graduate. Be prepared to explain in your response what Excel function was used for these calculations.

Answer rating: 100% (QA)

Income Comparison Desired Area of Employment Software Developer According to the Bureau of Labor Sta... View the full answer