D

E
T
C
E
J
O
R
FUTURE P
PROJECT

BY MS. GARCIA-GONZALEZ

DREAM JOB:
HIGH SCHOOL MATH TEACHER
ANNUAL SALARY:
$57,200.00

EDUCATION REQUIRED:
BACHELORS DEGREE AND CREDENTIAL

DREAM CAR:
CAMARO
MAKE: CHEVEROLET
MODEL: CAMERO LS
YEAR: 2017
COST: $32,900

DREAM HOME:
HOUSE
BEDROOMS: 4
BATHROOMS: 3
HOME TYPE: HOUSE
LOCATION: NEWPORT BEACH, CA
SQ. FT.: 9,583
COST: $1,925,000

ANNUITIES:
THINKING RETIREMENT
SAVINGS ACCOUNT

INSURANCE COMPANY - IRA

IF I WOULD SAVE $1,500.00 PER YEAR INTO MY

IF I WOULD SAVE $1,500.00 PER YEAR INTO MY IRA

THEN MY NET YIELD FOR INVESTMENT WOULD BE (.72)

THEN MY NET YIELD FOR INVESTMENT WOULD BE 8%.

AFTER 20 YEARS, MY SAVINGS ACCOUNT WILL HAVE:

SAVINGS ACCOUNT AND I WAS IN THE 28% MARGINAL

TAX BRACKET,
(8)=5.76%.

AFTER 20 YEARS, MY SAVINGS ACCOUNT WILL HAVE: $

53,775.74

ACCOUNT AND I WAS IN THE 28% MARGINAL TAX

BRACKET,

$ 68,642.95

ANNUITIES:
THINKING RETIREMENT (CONT.)
SAVINGS ACCOUNT

INTEREST I WOULD EARN INVESTING $1,500 PER

YEAR INTO SAVINGS ACCOUNT OVER 20 YEARS:

$ 23,775.74

INSURANCE COMPANY - IRA

INTEREST I WOULD EARN INVESTING $1,500 PER

YEAR INTO AN IRA ACCOUNT OVER 20 YEARS AND

AFTER THE BEING TAXED UPON WITHDRAWAL:

$ 30,141.50

AMORTIZE: CAR LOAN

My dream car is a Cheverolet Camaro and it costs $32,900.00
I will borrow the money from the bank. The bank is charging 8% interest rate on unpaid balance each year.
At the end of each year I will be paying $12,766.30 to amortize the loan at the end of 3 years.
End of Investment
Period Charged

Payment
Made

Payment Toward
Principal

Outstanding
Principal
$ 32,900.00

$ 2,632.00

$ 12,766.30

$ 10,134.30

$ 22,765.70

$ 1,821.26

$ 12,766.30

$ 10,945.04

$ 11,820.66

$ 945.65

$ 12,766.30

$ 11,820.65

0.01

AMORTIZE: CAR LOAN

My dream car is a Cheverolet Camaro and it costs $32,900.00

I will borrow the money from the bank. The bank is charging 8% interest rate on unpaid balance each year.
At the end of each year I will be paying $ 8,240.02 to amortize the loan at the end of 5 years.
End of Investment
Period Charged

Payment
Made

Payment Toward
Principal

Outstanding
Principal
$ 32,900.00

$ 2,632.00

$ 8,240.00

$ 5,608.02

$ 27,291.98

$ 2,183.36

$ 8,240.00

$ 6,056.66

$ 21,235.32

$ 1,698.83

$ 8,240.00

$ 6,541.19

$ 14,694.13

$ 1,175.53

$ 8,240.00

$ 7,064.49

$ 7,629.64

$ 610.37

$ 8,240.00

$ 7,629.65

0.00

AMORTIZE: CAR LOAN

My dream car is a Cheverolet Camaro and it costs $32,900.00

I will borrow the money from the bank. The bank is charging 8% interest rate on unpaid balance each year.
At the end of each year I will be paying $ 6,319.18 to amortize the loan at the end of 7 years.
End of Investment
Period Charged

Payment
Made

Payment Toward
Principal

Outstanding
Principal
$ 32,900.00

$ 2,632.00

$ 6,319.18

$ 6,319.18

$ 6,319.18

$ 6,319.18

$ 6,319.18

$ 6,319.18

$ 6,319.18

AMORTIZE: CAR LOAN

My dream car is a Cheverolet
Camaro and it costs $32,900.00

I will borrow the money from the

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

to amortize the loan at the end of

5 years, my Monthly payment
would be $ 667.72

AMORTIZE: COST OF A HOME

MY DREAM HOME COST: $ 1,925,00.00
INTEREST RATE: 5.4%
PAYMENTS ARE MONTHLY FOR 30 YEARS: $10,809.47

AMORTIZE: HOME AFFORDABILITY

My monthly affordable home payment: $1,906

If I make that payment on a loan for 30 years and my rate is 5.4% then

I can afford: $339,429.29 loan on a house

I cannot afford my dream home or I have to put a big downpayment.