1020 Finance Project F23

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Appalachian State University *

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1020

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Mathematics

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Jan 9, 2024

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docx

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MAT1020 Finance Project Name_______________________ Fall 2023 Date__________________ SCORE: ______________/100 Submit your HARD COPY OF THIS PROJECT BY THE LAST DAY OF SCHOOL DURING CLASS. The American Dream is to be happy in a house that you own in a nice neighborhood, with a family, and a job you love. However, no one talks about how expensive this life actually is. Where is your dream home located? Is your dream home actually within your reach? First, find a house anywhere within the United States. It can have whatever specifications you choose, and it can be as large or as small as you want. Go to a real-estate search website (i.e. Zillow.com, realtor.com, trulia.com, etc.) and find your home. Find a place to live in your preferred location. The house must be available for purchase. 1. Describe the house you’ve chosen. Where is it located? How many bedrooms? bathrooms? Floors? Square footage of the house? Basement? Any outstanding details of the house? Attach a picture of the house and a link to the website you found the house on. ( 10 points ) You may do this on a separate page if you want of paste it into here! 2. Based on that house; a. What is the house listed for on the website? (4 points ) b. Report the interest rate. You can use this link https://www.ncsecu.org/Mortgages/FixedMortgage.html or use a different banking site to find your 30-year fixed mortgage rate. Cite the website you used. You may also include a screen shot. (3 points)
MAT1020 Finance Project Name_______________________ Fall 2023 Date__________________ c. Calculate a monthly payment BY HAND WITH A FORMULA associated with the interest rate you found above and a 30-year fixed mortgage assuming you can make no down payment on this house. Show all work and use the correct formula. If you only put the answer, you will not receive credit! Round to two decimal places. ( 4 points ) d. Using the Amortization Excel Sheet from Asulearn, Copy and paste the amortization table values to support the information in parts (a), (b), and (c) for the first 3 payments AND the last 3 payments of the loan that does not include a down payment. ( 25 points ). Payment Number Amount of Payment Interest for Period Portion to Principal Principal at End of Period 0 1 2 3 358 359 360 e. If you have no down payment, find the following:
MAT1020 Finance Project Name_______________________ Fall 2023 Date__________________ i. How much do you expect to pay for this house after the 30 years are over? If necessary, round to the nearest dollar amount. (4 points) ii. How much interest will you pay over the 30 years? If necessary, round to the nearest dollar amount. (4 points) f. If you were able to afford a down payment, calculate how much a 20% down payment would be based on the list price of your house. Round to two decimal places if needed. (4 points) g. Based on this down payment amount, what is the value of the loan that you must take out to buy your house? Round to two decimal places if needed. (4 points) h. Calculate a monthly payment BY HAND WITH A FORMULA associated with the interest rate you found above and a 30-year fixed mortgage assuming you can make the 20% down payment on this house. Show all work and use the correct formula. If you only put the answer, you will not receive credit! Round to two decimal places. ( 4 points )
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