Mat126: Discussion 1

Discussion 1

1. Select the first three letters of your last name and add them up.

The first 3 letters in my name is SMI: S = 19, M = 13, I = 9

Adding them up = 19 + 13 + 9 = 41

2. Multiply the sum of that by $1500 to get your yearly income.

Yearly Income: 41 x $1500 = $61,500

3. My monthly expenses:

Car Payment = $283.15

Car Insurance = $72.00

Utilities = $242.77

Internet = $32.00

Cell Phone = $79.95

4. I also have a yearly educational bill of $7,980 that is due.

If you break it down to monthly payments, I would be paying $7980/yr. X 1yr/12mos = $665.00

5. Calculate your monthly income:

$61,500/yr X 1yr/12mos. = $5,125 in monthly income

6. Percentage of car payment:

($283.15/$5125 x 100% = ($283.15/5125) x 1.00 = 0.055 = 5.5%

7. To find out how much I have left for food, clothing, etc:

Total Expenses: $283.15 + $72.00 + $242.77 + $32.00 + $79.95 = $709.87

After Expenses: $5125 - $709.87 = $4,415.13 left over

After deducting educational expenses: $4,415.13 - $665.00 = $3,750.13 left over

($3,750.13/5125) x 100% = (3750/5125) x 1.00 = 73% of my monthly income is left over

For food, clothing, mortgage, etc.

Or you can use the formula: P = R x B

P = 3,750.13 B = 5,125

P = R x B

3750.13 = R x 5125

5125 5125

3750.13 = R

5125

0.73 = R equals 73%

8. My monthly mortgage would be:

28% of monthly income is: 0.28 x 5125 = $1,435.00

Monthly mortgage payment would be: $1,435.00

9. Total price of home I could get:

My down payment would be $61,500 x .25(5125) = $15,375

Not being able to use the table on page 435, I am using the 7% for 25 years, I will use this number to solve x, for my monthly mortgage payment.

7.70x = $1,435

7.70 7.70

X = $186.36

Multiply X by 1000...