Accelerated PreCalculus/Trig 3
Annuity Project - Mortgages
Name: ____________________________________
Due Date: ________________________________
Congratulations! You are ready to buy a new home.
1) Find a home in the area to buy (Pennsylvania, New Jersey, Delaware, or New York). The cost of the
house must be between $100,000 and $1,000,000.
2) Determine the amount of the down payment for the house (20% of the cost).
3) Determine the amount of your house that needs to be financed (the amount of your mortgage loan).
4) Answer the following questions regarding your chosen house for each mortgage structure offered:
a) What will your monthly payment be?
b) What is the total amount of interest that you paid during the life of the loan?
c) What is the total amount that you paid for your house in the end?
(down payment + mortgage loan + interest paid).
Rates for a MORTGAGE up to $400,000.
Structure 1
30 Year
4.250%
Structure 2
20 Year
4.200%
Structure 3
15 Year
3.625%
Rates for a MORTGAGE above $400,000 but less than $1,000,000.
Structure 1
30 Year
4.125%
Structure 2
20 Year
4.100%
Structure 3
15 Year
3.625%
5) Answer the following Analysis Questions:
1) Compare the three mortgage structures. In terms of its monthly payment, which mortgage
structure would be the least expensive?
2) Compare the three mortgage structures. In terms of the amount paid in interest, which
mortgage structure would be the least expensive?
3) Compare the three mortgage structures. In terms of total amount paid for the home, which
mortgage structure would be the least expensive?
4) Which mortgage structure is best suited for you and why?
This question is an extension for the project. You should consider a future plan when
answering this question…What will your career be? What will your budget look like? How large of a
family will you have? Based on at least these considerations, decide which mortgage structure
would be the best for you and why. You may also come to the conclusion that this house is not
realistic for you based on your future plans.
Note: This question is worth 8 points out of the total 72. Basic answers such as: “I would choose
Structure -- because it is the cheapest.” will receive minimal points. This question is an
opportunity for you to be creative and go above and beyond. I want to see genuine thought and
analysis. Earning a 8/8 requires going above and beyond.
Recommended Websites:
Job Information: Bureau of Labor Statistics - http://www.bls.gov/oco/
Houses: www.realtor.com, www.realestate.com, www.trulia.com
Project Description: Complete all of the steps listed on the previous page. All work must be displayed as a
PowerPoint. The project should look presentable, professional, and creative. The project must be submitted to
Young’s stu_drop folder OR via Email ([email protected]) by ____________________ as Lastname.Annuity.
As this project is being submitted electronically, projects are due by the deadline regardless of
attendance at school.
PowerPoint Slides (Recommended Setup):
Slide 1 – Title (Include Name, Date, Title of Project)
Slides 2 & 3 – House Information – Include description of house (amount of bedrooms, bathrooms,
special features, etc); pictures of the house; address of the house. (Also include the web address
where you located the house).
Slide 4 – Down Payment
Slides 5 & 6 – Structure 1; Slides 7 & 8 – Structure 2; Slides 9 & 10 – Structure 3
Slide 11 – Analysis Questions #1-3
Slide 12 – Analysis Question #4
Notes:
-All steps must be shown and typed for each problem (use EQUATION EDITOR).
-Do not round any values until the MONTHLY PAYMENT (p) step.
-Answers must be presented in a complete sentence.
For Example: “My monthly payment using Structure 1 will be $1000.00.”
-Make sure that text is readable.
For Example: black text on dark gray background is NOT readable.
Grading Checklist: This project will be worth a total of 72 points in the SUMMATIVE ASSESSMENT category
of your first marking period grade. (In other words, it counts as a test).
How to LOSE points:
Projects will lose 7 points for each day late (Projects will be considered one day late at 3pm the day it
is due).
Projects will lose 2 points total for using an incorrect file name.
Projects that are copied/plagiarized will be redone. Students involved in the copying/plagiarizing will
redo their project and submit a new and original project the next day. Grades will be reduced by 50%.
How to GAIN points:
Item
Points Earned
Points Possible
Title Slide
2
House Information Slide(s)
5
Down Payment Slide
3
Structure 1 Slide(s)
10
Structure 2 Slide(s)
10
Structure 3 Slide(s)
10
Content of Questions #1-3
3
Content and Analysis of Question #4
8
Grammar, Spelling, Mechanics, etc
6
Overall Neatness, Professionalism, Creativity, and Organization
(includes color choices, layout, etc)
10
Use of Class Time
5
Structure slides will be graded in the following areas: correct calculations, correct answers, writing answers in
complete sentences, showing all correct work using equation editor.
Salary Per Year
EXAMPLE $130,000
Divide by 12 (MONTHLY)
10,833.33
Federal
-2509.10
Social Security (6.2%)
-671.67
Medicare (1.45%)
-157.08
State (3.07%)
-332.58
Earned Income Tax (Local) (1%)
-108.33
Emergency Services Tax ($52/year)
-4.33
Unemployment (0.06%)
-6.50
Take Home
7043.74
For federal taxes, see
Mrs. Greenberg to read
the tax chart.
**Budget Considerations:
College Loan Payments – You owe $10,000 in college debt at your 30th birthday and pay $250 per
month. (Note: if you choose a career that did not require a college education, you do not need to
worry about this debt).
Budget Consideration
College Loans
Car Payment
Cell Phone
Internet
Cable
Electricity
Car Insurance
Homeowners Insurance
Food
Recommended Websites:
Job Information: Bureau of Labor Statistics - http://www.bls.gov/oco/
Houses: www.realtor.com, www.realestate.com, www.trulia.com
Name: _________________________________________ Overall Score: __________
Item
Points Earned
Points Possible
Title Slide
2
House Information Slide(s)
5
Down Payment Slide
3
Structure 1 Slide(s)
10
Structure 2 Slide(s)
10
Structure 3 Slide(s)
10
Content of Questions #1-3
3
Content and Analysis of Question #4
8
Grammar, Spelling, Mechanics, etc
6
Overall Neatness, Professionalism, Creativity, and Organization
(includes color choices, layout, etc)
10
Use of Class Time
5
Name: _________________________________________ Overall Score: __________
Item
Points Earned
Points Possible
Title Slide
2
House Information Slide(s)
5
Down Payment Slide
3
Structure 1 Slide(s)
10
Structure 2 Slide(s)
10
Structure 3 Slide(s)
10
Content of Questions #1-3
3
Content and Analysis of Question #4
8
Grammar, Spelling, Mechanics, etc
6
Overall Neatness, Professionalism, Creativity, and Organization
(includes color choices, layout, etc)
10
Use of Class Time
5