Spring 2019 Time Value of Money (TVM) is the main topic for this homework. This assignment will help you understand how you can use TVM in your life. Your paper should include the following:

1. Assume that you are single. Briefly tell the reader what job you would like to have, what you do, and how much money you make a year.

2. Assume that you pay roughly third of your salary for taxes, insurance, 401K, and so on. Calculate.

3. Tell me what car you would like to have. How much money does it cost? How much money will you pay monthly? You will need to do some research on this one. Assume you want to buy a brand new car no down payment.

4. You are ready to buy a house. Please tell me about the house you are going to buy (# of bedrooms, location, and price). Calculate your mortgage payments (monthly). Assume that your mortgage is going to be either for 25 or 30 years (it is up to you). If you decide that you would like to take a 15-year mortgage, explain no down payment.

5. Do not forget that I need to see the process (PV = XX, I = YY, N = ZZ, PMT = WW, FV = VV, Compounding). Include as much information as possible.

6. Lastly, give me your total. Create a table that summarizes how much money you make, how much money you bring home, how much you spend on monthly payments for your car and your house. How much do you have left every month?

You have some cash left monthly, is it enough to buy groceries, pay for utilities, gas for your car, pay your cellphone bill, insurance, personal expenses (e.g., clothing, going out, etc.), savings, emergency fund, etc.? Elaborate.

Guidelines:

Do not make assertions without providing appropriate citations.

Use your creativity and imagination when working on this assignment.

Utilize tables, charts, figures, etc.