So I started solving this assignment, but I am having difficulty with APRs

Buying a Home In this project, you will investigate the process of buying a house. This will include nding a job, saving money for a down payment, getting a loan, nding a house, and computing your monthly mortgage. The actual process is very complicated and includes many steps. This project will give you an overview, an idea, of what it will be like. Step 1 Find a Job Assume that you will graduate from college this May. You now have the certicate, license, degree, etc. that you need to get the job you want. Congratulations! Describe what kind of job you expect to have and what starting salary is realistic for that type of job. As you research this, consider where you plan to live, as salaries will vary from state to state. Project your salary over 5 years, including raises and cost-ofliving increases. Support your salary assumptions with data and cite your sources. BA in Graphic Design My degree, certificate, or license Product Designer My profession My salary Year 1 39900 Year 2 39390 Year 3 39-784 Year 4 40182 Year 5 40584 I believe my salary assumptions are correct because I have looked at starting salary on glassdoor.com that shown average starting salary for Graphic Designers $36,000-$40,000. I have projected my salary over 5 years including 1% of the cost of living increases and raises. Step 2 Save Money You will save money for a down payment on a home. You will do this in two stages: 1. You buy a lottery ticket to celebrate your graduation and happen to win $5000. You decide to save the $5000 for 5 years to make up part of your down payment. (Refer back to Chapter 7 to consider whether this is actually a likely outcome of buying a lottery ticket). 2. You will save 10% of your gross monthly salary for 5 years. Your salary will likely increase every year, so to make this simple take your total income for the 5 years and nd the average monthly salary. Save 10% of this amount each month. $198,940 My total income over 5 years My aVeI'age gross monthly salary $331567 I will save this much each month $3315 You decide to open a savings account or money market account to save for your down payment. Research banks online and choose two different banks that offer savings accounts or money market accounts. These accounts will have low interest rates, and that's fine (they also have low risk of losing your savings). You must pay 15% federal taxes on the interest you earned. Describe the type of savings account you are choosing, including the APR. You may include a printout of the information from the bank's website. Most banks will advertise the APY on an account rather than the APR. To simplify things, you can assume that the APR for the account is the advertised APY. Also assume that the interest is compounded monthly because you're making monthly deposits. (Neither of these assumptions are 100% accurate, as we learned about the difference between APY and APR in Unit 3B, but they simplify the problem Without making a large difference in the nal result). Bank 1 Capital One My bank is My type of savings account savmgs account The APR 0400/" My $5000 in lottery winnings grows to My $5000 earned this much interest (Show your work here) My monthly deposits grow to a total of My monthly deposits earned this much interest (Show your work here) The total amount I have saved before taxes is The total amount of interest earned is I will pay this much in taxes The total amount I have saved after taxes is Bank 2 USAA My bank is My type of savings account savmgs account My $5000 in lottery winnings grows to My $5000 earned this much interest (Show your work here) My monthly deposits grow to a total of My monthly deposits earned this much interest (Show your work here) The total amount I have saved before taxes is The total amount of interest earned is I will pay this much in taxes The total amount I have saved after taxes is Final decision The bank I will use to save is The amount I have saved for a down payment