You make $8,000 Monthly, $96,000 annually the house is $283,850. The tax rate in the city is 0.09%. The property tax is $5.80 and homeowners insurance is $1,200 and number five instead of two it's six.

Assume that you are currently employed. You expect a 5 percent annual increase in your salary. Assume also that all your taxes and deductions place you on a flat 30 percent tax rate. Your plan is to buy your first house five years from now at a projected price up to 3 times your annual salary at the time of purchase. You start now to set aside $650 every month in an account that will earn 4 percent nominal rate annually in order to accumulate enough money for a reasonable down payment. You have been pre-approved for a 15- year, 4 percent conventional mortgage loan ( based on the estimates of your income and everyday expense which include the house purchase and other consequential expenses, i.e. mortgage payment, mortgage insurance, property taxes) provided that your debt ration does not exceed 40 percent at the time of actual purchase and financing. The mortgage agreement will require that you will provide evidence of a homeowner's insurance coverage. Additionally, you will be responsible for your property taxes.(These must be determined by you from an insurance agent and the County office respectively at the time of purchase and must be factored into the purchase decision to determine eligibility). Just six months into your mortgage payment, you win a lottery jackpot and decide to pay your entire mortgage loan.

Starting from today,

1. Project your annual salary and take home pay for the next five years.

2. Project the amount of money in the savings account for your down payment in five years.

3. Prepare and income/ expenditure statement and show your debt ratio.

4. Project the price of your house in five years and the amount to be financed after the down payment.

5. Prepare your amortization statement until the mortgage is paid off after six months.

6. Show your total monthly house payment which will include your mortgage payment, property taxes, and insurance premium on a monthly basis. Also, show the pay-off balance.