Personal Finance , business and finance homework help

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Personal Finance , business and finance homework help

Project

During this unit you will be working on a final project in order to bring together everything that you’ve learned. You should be thinking about this unit project as you participate in each lesson, then submit the project at the end of the unit.

Goal

To create a budget that incorporates all of the expenses when living independent from your parents.

Role
You are a student preparing a budget to share with a bank when trying to get a loan for a car.

Audience
Bank loan officer and other bank personnel

Situation
You would like to get a car and need to share with the loan officer your expenses and income so you can justify being able to afford the car payment. Complete the following tasks:

  • Research an apartment and determine the cost to rent and compare it to buying a house in the same area – use the information from Lesson 3
  • Identify all expenses and costs you would have each month
  • Identify your income – based on the job you researched in Unit 1
  • Present information about the car you would like to purchase – use the information from Lesson 2

Product

Exhibition:

Create a proposal as a word processing document that gives information about the following:

  • Employer’s name & address (can be fictitious)
  • Job title
  • Monthly net pay
  • Information about the apartment you will be renting (name of apartment complex, address, and monthly rent)
  • Table in the word document with all expenses and income listed. Also include a calculation of income minus expenses to determine how much is left for car payment and savings within your table

End the document with the information about the car that you want the loan for. Use the website to calculate how much of a car you can afford assuming $1000 down payment. Use CarMax Affordability Calculator and then provide the following information in your proposal: How much the car can cost, what type of car you want to get in that price range (make, model & year), and what your car payment is going to be. Use CarMax Calculator to calculate your payment assuming 2.49% interest.

Reflection
The bank tells you that they can give you a loan, but for $100 less than you need for the car you proposed. Make the necessary adjustments to your budget or pick a different car so you can get the loan. Your adjustments should be one of the following: reducing spending, picking a different car, or giving up something. You must submit a separate word document with your adjusted budget and then a paragraph describing the adjustments you made. Explain why you went with these adjustments. Also, explain whether or not having a roommate could be an option.