1.The median household income for Arkansas is around $46,000. Most budgets recommend spending around 30% of your monthly income (or less) on housing. How much a month should this household plan to spend on housing?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
1.The median household income for Arkansas is around $46,000. Most budgets recommend spending around 30% of your monthly income (or less) on housing. How much a month should this household plan to spend on housing?
2. That calculated monthly expense should include all housing costs (such as insurance, property taxes, etc), let’s estimate this means they would have around $950 a month for their mortgage payment and they have poor credit so qualify for a loan with an APR of 5.481%. What size 30 year home mortgage loan could they pay off with a monthly payment of $950?
3.
Based on that size of loan and the $950 monthly payment, how much would they pay in interest on that 30 year home loan?
4.
Let’s assume instead they have great credit and qualify for a loan with an APR of 4.025%, what size home mortgage loan could they borrow that could be paid off in 30 years with these $950 monthly payments?
5.Based on that size of loan and the $950 monthly payment, how much would they pay in interest on that 30 year home loan?
6.
Most budgets recommend saving and investing around 15-18% of your monthly income for retirement. How much a month should this household plan to save for retirement if they save 16% of their monthly income?
7.You decide to save slightly less than that and save $600 a month to invest into a retirement account promising an annual return of 4% from when you start working at 24 until you retire at 64 years young. How much will you have in your retirement account when you retire?
8.
If you can't start saving that early in your career, you will need to save more each month. How much would you need to save each month during the last 30 years of your career to have $700,000 when you retire? (Still assuming your retirement account earns an APR of 4%.)
9.if they have $57,000 combined student loans with an APR of 5.5%, what size monthly payment would pay off these loans after 15 years?
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