Adulting 101 Assuming you line up with the vast majority of consumers in this nation you at some point will prob- ably want to buy a car and a home. These things needs to be insured as well as paid for. Suppose you want to buy a home that costs $265,000 and a car that costs $31,300. The homeowners insurance you purchase will cost $88 per month and the car insurance will cost $38 per month. 1) Choose a job you think might enjoy and look up the average and median pay for entry level work into the field. Choose either the median or the average as your yearly income for purposes of financing the rest of the items in the this project. Justify your selection and cite your sources. 2) Suppose you want to pay off your home in 30 years. You finance a monthly mortgage at 3.6% APR. Find the total monthly payment of all expenditures related to buying and insuring the home. Find the total cost of the home over a 30 year period. 3) Suppose you want to pay off your car in 8 years. You finance a loan for the car at 4.5% APR. Find the total monthly payment of all expenditures related to buying and insuring the car. Find the total cost of the car over an 8 year period. 4) Good financial advice dictates that your car and home monthly expenditures should not exceed 40% of your monthly pay. Given the job you chose in question 1, is it feasible to purchase the car and house discussed in questions 2 & 3? Why or why not? Is there a way you can make it work (find a better loan, scrimp and save for the 8 years on the car, or pay off the major purchases over a longer period of time, etc.)? Over the course of this project what have you learned about financial literacy and planning? Adulting 101 Assuming you line up with the vast majority of consumers in this nation you at some point will prob- ably want to buy a car and a home. These things needs to be insured as well as paid for. Suppose you want to buy a home that costs $265,000 and a car that costs $31,300. The homeowners insurance you purchase will cost $88 per month and the car insurance will cost $38 per month. 1) Choose a job you think might enjoy and look up the average and median pay for entry level work into the field. Choose either the median or the average as your yearly income for purposes of financing the rest of the items in the this project. Justify your selection and cite your sources. 2) Suppose you want to pay off your home in 30 years. You finance a monthly mortgage at 3.6% APR. Find the total monthly payment of all expenditures related to buying and insuring the home. Find the total cost of the home over a 30 year period. 3) Suppose you want to pay off your car in 8 years. You finance a loan for the car at 4.5% APR. Find the total monthly payment of all expenditures related to buying and insuring the car. Find the total cost of the car over an 8 year period. 4) Good financial advice dictates that your car and home monthly expenditures should not exceed 40% of your monthly pay. Given the job you chose in question 1, is it feasible to purchase the car and house discussed in questions 2 & 3? Why or why not? Is there a way you can make it work (find a better loan, scrimp and save for the 8 years on the car, or pay off the major purchases over a longer period of time, etc.)? Over the course of this project what have you learned about financial literacy and planning
