Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

textbook, notes, calculator, etc. Read the rubric on the following page to see how you'll be scored for this assignment. 1. Pick a career for

image text in transcribed
image text in transcribed
textbook, notes, calculator, etc. Read the rubric on the following page to see how you'll be scored for this assignment. 1. Pick a career for yourself and search online for an average starting salary for that job. Starting salaries vary by where you are living so you'll likely need to also choose a city or town to live in. Capture a screen-shot of the salary you find online and include it with your work. Next, divide your annual salary by 12 to compute your monthly salary. Subtract 30% from your monthly salary to account for taxes. What is your take-home monthly paycheck? 2. Find a new or used car online that you would like to buy and believe you can afford with your chosen career. (If you choose a car that is too expensive, you'll need to redo this exercise until you find one that you can afford.) a) Capture a screen-shot of the car with its price and include it with your work for this assessment. Let's assume you have excellent credit so the dealer gives you 3 buying options: Choice 1: 3 year loan for 3.24% with monthly payments Choice 2:4 year loan for 3.65% with monthly payments Choice 3: 4 year loan for 3.65% with weekly payments For each of these options, compute the monthly payment required to amortize the loan. You must show all work including what formula you used and the value of each variable. You must do this part without a spreadsheet. b) Assume that you can't spend more than 15% of your take-home pay (answer from #1) on the car. Can you afford the car you want? Which buying option is the best option for you? Explain. c) Create an amortization schedule in Excel or Google Sheets for each of the three options. (Modify the instructions in the workbook to match each of the three buying options. Put all three spreadsheets in one file with each option on a different tab. Upload this spreadsheet file with your work for this performance assessment. Make sure you upload the actual spreadsheet - not just an image of it. I need to look at the formulas in the file.) What is the total amount of interest paid for each of the three options? With this additional information, which buying option do you think is the best option? Explain. 3. Assume you spend 17% of your take-home monthly pay (answer from #1) on food, 35% of your take-home pay on rent and assume you spend the monthly car payment selected above. (If you can't afford the car you selected above, then chose a different car and state its monthly payment.) a) How much of your monthly paycheck is left (after taxes, food, rent and car payment)? b) At the end of each month, you deposit this remaining money answer from part 3a) into an account that pays 2% compounded monthly. How much money will be in this account at the end of one year? You must show all work including the formula used and the value of each variable. Score Opoints Not completed or not enough work shown to support answer Not completed or not enough work shown to support answers Notcompleted or not enough work shown to support answers Make your work organized and clear. If I can't follow it, I can't give you credit for it. 3 points 2 points 1 point 1 Selects career, includes salary Selects career, includes salary Selects career, but does not screen-shot accurately screen-shot, makes a minor include a salary screen-shot, computes monthly salary after error with computing monthly and/or makes a major error taxes salary with computing monthly salary 2. a) Select a car with its price Selects a car with its price Selects a car but does not screen-shot accurately screen-shot, computes monthly include its price screen-shot computes monthly payments payments for all three options OR does not compute all three for all three options (without a with a minor error monthly payments, OR spreadsheet) computes all three options but with major errors 2.b) Correctly computes 15% of Makes a minor error when Makes a major error when take-home salary, and correctly computing 15% of take-home computing 15% of take home identifies if car is affordable, salary, but correctly identifies salary or cannot correctly and makes a reasonablechoice if car is affordable, or makes a decide if the car is affordable or of buying options with a minor error with choosing a does not make a reasonable reasonable explanation for the reasonable buying option and/ buying choice and does not choice or does not explain why the explain choice (or explanation buyingoption was selected is notcorrect) Creates 3 accurate amortization Creates 3 amortization Does not include amortization schedule spreadsheets (1 on schedulespreadsheets with schedule but correctly each tabof 1 file), correctly minor error or, makes a minor identifies the total interest identifies the total amount of error in identifying the total eamed or does include interest paid for all three amount of interest paid for at amortization schedule but buying choices and explains least one of the buying choices there is a major error with itor which buying option is best or did not explain which a major error with the total buying choice is best interestcomputation 3.a) and b) Correctly computes remaining A minor error is made when A major error is made when salary and how much money computing the remaining computing the remaining would be saved after 1 year salary or computing the salary or when computing the amount of money in the amount of money in the account after a year account after a year 2.0) Not completed or not enough work shown to support answers Notcompleted or not enough work shown to support answers Total Points earned SCORE textbook, notes, calculator, etc. Read the rubric on the following page to see how you'll be scored for this assignment. 1. Pick a career for yourself and search online for an average starting salary for that job. Starting salaries vary by where you are living so you'll likely need to also choose a city or town to live in. Capture a screen-shot of the salary you find online and include it with your work. Next, divide your annual salary by 12 to compute your monthly salary. Subtract 30% from your monthly salary to account for taxes. What is your take-home monthly paycheck? 2. Find a new or used car online that you would like to buy and believe you can afford with your chosen career. (If you choose a car that is too expensive, you'll need to redo this exercise until you find one that you can afford.) a) Capture a screen-shot of the car with its price and include it with your work for this assessment. Let's assume you have excellent credit so the dealer gives you 3 buying options: Choice 1: 3 year loan for 3.24% with monthly payments Choice 2:4 year loan for 3.65% with monthly payments Choice 3: 4 year loan for 3.65% with weekly payments For each of these options, compute the monthly payment required to amortize the loan. You must show all work including what formula you used and the value of each variable. You must do this part without a spreadsheet. b) Assume that you can't spend more than 15% of your take-home pay (answer from #1) on the car. Can you afford the car you want? Which buying option is the best option for you? Explain. c) Create an amortization schedule in Excel or Google Sheets for each of the three options. (Modify the instructions in the workbook to match each of the three buying options. Put all three spreadsheets in one file with each option on a different tab. Upload this spreadsheet file with your work for this performance assessment. Make sure you upload the actual spreadsheet - not just an image of it. I need to look at the formulas in the file.) What is the total amount of interest paid for each of the three options? With this additional information, which buying option do you think is the best option? Explain. 3. Assume you spend 17% of your take-home monthly pay (answer from #1) on food, 35% of your take-home pay on rent and assume you spend the monthly car payment selected above. (If you can't afford the car you selected above, then chose a different car and state its monthly payment.) a) How much of your monthly paycheck is left (after taxes, food, rent and car payment)? b) At the end of each month, you deposit this remaining money answer from part 3a) into an account that pays 2% compounded monthly. How much money will be in this account at the end of one year? You must show all work including the formula used and the value of each variable. Score Opoints Not completed or not enough work shown to support answer Not completed or not enough work shown to support answers Notcompleted or not enough work shown to support answers Make your work organized and clear. If I can't follow it, I can't give you credit for it. 3 points 2 points 1 point 1 Selects career, includes salary Selects career, includes salary Selects career, but does not screen-shot accurately screen-shot, makes a minor include a salary screen-shot, computes monthly salary after error with computing monthly and/or makes a major error taxes salary with computing monthly salary 2. a) Select a car with its price Selects a car with its price Selects a car but does not screen-shot accurately screen-shot, computes monthly include its price screen-shot computes monthly payments payments for all three options OR does not compute all three for all three options (without a with a minor error monthly payments, OR spreadsheet) computes all three options but with major errors 2.b) Correctly computes 15% of Makes a minor error when Makes a major error when take-home salary, and correctly computing 15% of take-home computing 15% of take home identifies if car is affordable, salary, but correctly identifies salary or cannot correctly and makes a reasonablechoice if car is affordable, or makes a decide if the car is affordable or of buying options with a minor error with choosing a does not make a reasonable reasonable explanation for the reasonable buying option and/ buying choice and does not choice or does not explain why the explain choice (or explanation buyingoption was selected is notcorrect) Creates 3 accurate amortization Creates 3 amortization Does not include amortization schedule spreadsheets (1 on schedulespreadsheets with schedule but correctly each tabof 1 file), correctly minor error or, makes a minor identifies the total interest identifies the total amount of error in identifying the total eamed or does include interest paid for all three amount of interest paid for at amortization schedule but buying choices and explains least one of the buying choices there is a major error with itor which buying option is best or did not explain which a major error with the total buying choice is best interestcomputation 3.a) and b) Correctly computes remaining A minor error is made when A major error is made when salary and how much money computing the remaining computing the remaining would be saved after 1 year salary or computing the salary or when computing the amount of money in the amount of money in the account after a year account after a year 2.0) Not completed or not enough work shown to support answers Notcompleted or not enough work shown to support answers Total Points earned SCORE

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

1. Why do people tell lies on their CVs?

Answered: 1 week ago

Question

2. What is the difference between an embellishment and a lie?

Answered: 1 week ago