As an Ivy Tech student, you are making an investment in your education. This project will look at how that investment will pay off if you graduate and get a job in your desired field. You will be comparing your future finances with someone who is not a college graduate. Assume that the median annual income for a high school graduate is $31,000 (although the actual value is higher).Use this value in comparison statements with proper absolute and relative change statements.

In this project you are required to do the following:

Create an excel sheet to help calculate the correct values for housing and retirement. Although this is not a graded part of the project, only excel can produce the correct result (and not a simple calculator for most questions). Ask your instructor if you need to submit an excel template. Refer to the excel help in the book or notes in your course on how to find mortgage or retirement values. You will use the PV, FV, PMT formulas in Excel.

Your written portion of the project will consist of answering short answer questions given below. Each short answer solution should be a minimum of 3 sentences and 50 words. For each, use proper quantitative reasoning and wording to address the solution. This should include sophisticated and elegant solutions to clearly convey your message to the reader. Make sure to use your spreadsheet to answer what if questions with specific values and provide support for your statements. To do this, make changes in your spreadsheet and analyze the results of the manipulations be quantitative and specific with correct absolute and relative change statements.

HINT: As you are writing your absolute or relative change sentence, make sure to address more than or less than what value. Writing sentences such as, The absolute/relative change is... will NOT be counted as correct. What is the meaning of an absolute or relative change in each scenario?

1. Explain what job you have chosen and why. Use the median salary from the following website: https://www.bls.gov/ooh. Compare your salary to that of a high school graduate. How does your salary compare to the high school graduate? Use BOTH an absolute change and relative change statement for your comparison.

Mortgage Loan

2. Assume you are planning on spending a certain amount of income towards a mortgage. The terms of the mortgage are 6.85% APR for 30 years. You plan on spending 32% of your monthly gross income towards your mortgage. Make sure to show at least 1 sample formula that you used in Excel to get the house price.

If you spend 32% of your monthly salary towards a house, what is the highest price house you can afford?

What is the highest priced house a high school graduate can afford?

Use an absolute or relative change statement to compare the house prices of the high school graduate and your house.

Retirement Account

3. Assume that your selected job has a retirement plan that allows you to save for 38 years.

If 10% of your monthly income is put into a retirement account, how much should you expect if the annual return is 7.99%? Math 123 Quantitative Reasoning Project

How much should a high school graduate expect to get if they also save 10% of their salary for 38 years?

Use an absolute or relative change statement to compare the retirement accounts of the high school graduate and your retirement. Make sure to show at least 1 sample formula used to get the retirement price.

Salary Increase

4. Imagine if your job gives a salary raise of 1.75% each year.

How long will it take (rounded to the whole year) for your salary to be twice as much as when you started?

f the high school graduate also received the same percentage raise, how long would it take for them to get twice as much money (rounded to the whole year)? Compare the years for both the college graduate and the high school graduate. Explain the reasoning for your answer. Use an absolute or relative change sentence in your comparison.

5. Consider working for a company that gives you 2 options for a yearly increase in your salary:

A. You can take a wage increase of 2.25% of your salary B. You can take a wage increase of $1350 added to your salary Which scenario should you take for your job, option A or B? Explain why you chose your option from the previous question. Make sure to address any absolute or relative change statements as needed. Should the high school graduate take option A or B? Justify your answer for the high school graduate. Submit only the Word file following your instructors directions for submission.