Finance Project - Due December 16, 2003

Scenario: You are 30 years hold and have been working in the same job for 5 years.

                 You and your spouse are both working and you have two kids, one 4 and the other 2. They are a boy and a girl.

You have been saving 300.00 per month ever since you are 25 and have been investing the money using all the techniques you learned in some dumb high school class.

1. Find and print out your job descriptions and salaries. In all likelihood the most you would be making is around 125,000 (maximum). This should be the max you use unless you are cleared to do so by Wexler.   Print out that information.

2. Buy a new house (you may assume you have a 10% downpayment already saved)

    Print out the house, price, and calculator (15 or 30 year - your choice depending on many of the choices you have to make) showing the monthly payment, print out a list of closing costs. Print out (approximate) home insurance and property taxes

3. Buy a new car.  Print out the car with msrp and you may assume a 10% down payment and no trade in. You may choose a 36 to 60 month payment with 5.5% interest. The warranty on the car is only good for 36 months.

    Print out your insurance (30 years old and multi-line and max. limits)

4. Do the calculations to lease a car for your spouse with 0 down.

The APR for the lease is 5.5% and the term is 48 months. The residual is 40% and there is no trade in.

5. Come up with a budget to cover all your costs each month. Do not forget that approximately 40 % of your salary will go to income taxes, property taxes, social security and medicare taxes.

6. Find one stock you want to invest in. Print out the 4 year chart, profile and statistics and state why you think you will make money over time.