# math project

Section 5: Buy a House (Lesson 5.6) Name ______________________

Look in your Long Term Budget from part 1 of the project and find how much you have reserved for your Rent/Mortgage.

Long Term Budget Mortgage Payment \$ ________________________________________

Let’s say interest rates for buying a home are around 5.5% on a 30 year loan. Determine a reasonable price range for a home that you can buy on your current budget.

N

12(30)

I%

5.5

*PV

PMT

-( )

FV

0

P/Y

12

C/Y

12

PMT:

END BEGIN Calculator Directions:

Apps, 1: Finance, 1: TVM Solver, Input values, Quit

Apps, 1: Finance, 4: tvm_PV

How do interest rates affect your price range? You are going to determine a reasonable price range for your home with the same mortgage payment, but now interest rates have lowered to 4% on a 30 year loan.

N

12(30)

I%

4

*PV

PMT

-( )

FV

0

P/Y

12

C/Y

12

PMT: END BEGIN

Price Range for your lovely home:

How big of a difference does the price of a house make? Look on Zillow.com or another real estate website. Look for homes in both price ranges in Frisco/McKinney. What are differences you can find in homes in these two price ranges?

Price Range #1 _____________________________ Price Range #2_________________________________

Neighborhood______________________________ Neighborhood______________________________

Square Footage __________________________ Square Footage ________________________________

Number of bedrooms ________________________ Number of bedrooms ___________________________

Number of bathrooms _______________________ Number of bathrooms ___________________________

Number of family rooms _______________________ Number of family rooms ________________________

Game room, family room, media room, etc… Game room, family room, media room, etc…

What else does your house have? What else does your house have?

What kind of a difference does a double income make? This means you have to get married (or at least live with someone long-term). Take your income and double it. Use this number to find a new price range for a home

Long Term Budget Mortgage Payment * 2 \$ ________________________________________

N

12(30)

I%

5.5

*PV

PMT

-( )

FV

0

P/Y

12

C/Y

12

PMT: END BEGIN

N

12(30)

I%

4

*PV

PMT

-( )

FV

0

P/Y

12

C/Y

12

PMT: END BEGIN

What are some potential problems that could occur from depending on that second income?Section 6: Buy a Car (Lesson 5.7)

What is the total amount that you can afford?

Research – What types of cars meet your needs?

Directions: Place a check mark next to features that are important to you for your car. Price Year ModelGas MileageFuel Type# of doorsTotal # of miles# seatsType of engineTransmissionBody styleNavigation

a. Visit the Kelley Blue Book “Show Me the Cars that Meet My Needs” website www.kbb.com/cars-for-sale/

c. Answer the questions to indicate your desired features. May have to press the “+” to create more features.

d. Click “view” to learn what models have your desired features

f. Identify two cars you are interested in further researching. Record the information below.

Car 1

Car 2

Make:

Make:

Model:

Model:

Year:

Year:

Price:

Price:

Mileage:

Mileage:

1. Were there some features that one car had that another did not?

2. Which car would you select and why?

3. What trade-offs did you have to make in order to get the right car for you and your budget?

Step 2: Spending Plan Evaluation (Financing Options)

Car Price: \$

Now use the TVM solver in your calculator to find the monthly payment for each lending source above.

Bank

N

60

I%

5.9*PV

Car price

**PMT

FV

0

P/Y

12

C/Y

12

PMT: END BEGIN

Dealership

*N

48

*I%

3.9 *PV

Car price

**PMT

FV

0

P/Y

12

C/Y

12

PMT: END BEGIN