You make 8,000 monthly the house is 100,000. the property tax is .00575 homeowners insurance is 2,327 monthly

The project for this class revolves around making a financial decision by employing some of the major concepts and applications covered in the class Assume that you are currently employed. You expect a 5 percent annual increases in your salary. Assume also that all your taxes and deductions place you on a flat 25 percent flat tax rate. Your plan is to buy your first house five years from now at a projected price one and half times your annual salary at the time of purchase. You start now to set aside 650 every month in an account that will earn 3 percent nominal rate annually in order to accumulate enough money for a reasonable down payment. You have been pre-approved or a 5-year, 4 percent conventional mortgage loan (based on the estimates of your income and everyday expenses which include the house purchase and other consequential expenses, ie mortgage payment, mortgage insurance, property taxes) provided that your debt ratio does not exceed 30 percent at the time of actual purchase and financing. The mortgage agreement will require that you will provide evidence of a homeowner insurance coverage. Additionally, you will be responsible for your property taxes. (Thes must be determined by you from an insurance agent and the County office respectively at the time of purchase and factored into the purchase decision to determine eligibility). Just six months into your mortgage payment, yo your mortgage loan u win a lottery jackpot and decide to pay off Project your annual salary and take home pay for the next five years 2. 1. Project the amount of money in the savings account for your down payment in five vears. 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 t 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 property taxes and insurance. Assume that you are paying your annual property taxes and annual insurance premium on a monthly basis. Also, show the pay-off balance Your completed work should be typed, double spaced, 12 fonts. The paper should alsc contain all your references if any. All the pertinent information should be explicitly expressed