Accelerated PreCalculus/Trig 3Name: ____________________________________ Annuity Project - MortgagesDue 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). 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. Rates for a MORTGAGE up to $400,000. Structure 130 Year4.250% Structure 220 Year4.200% Structure 315 Year3.625% Rates for a MORTGAGE above $400,000 but less than $1,000,000. Structure 130 Year4.125% Structure 220 Year4.100% Structure 315 Year3.625% Recommended Websites: Job Information: Bureau of Labor Statistics - Houses:

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 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 $ ” -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: ItemPoints EarnedPoints Possible Title Slide2 House Information Slide(s)5 Down Payment Slide3 Structure 1 Slide(s)10 Structure 2 Slide(s)10 Structure 3 Slide(s)10 Content of Questions #1-33 Content and Analysis of Question #48 Grammar, Spelling, Mechanics, etc6 Overall Neatness, Professionalism, Creativity, and Organization (includes color choices, layout, etc) 10 Use of Class Time5 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 YearEXAMPLE $130,000 Divide by 12 (MONTHLY)10, Federal Social Security (6.2%) Medicare (1.45%) State (3.07%) Earned Income Tax (Local) (1%) Emergency Services Tax ($52/year)-4.33 Unemployment (0.06%)-6.50 Take Home **Budget Considerations: College Loan Payments – You owe $10,000 in college debt at your 30 th 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 For federal taxes, see Mrs. Greenberg to read the tax chart. Recommended Websites: Job Information: Bureau of Labor Statistics - Houses:

Name: _________________________________________Overall Score: __________ ItemPoints EarnedPoints Possible Title Slide2 House Information Slide(s)5 Down Payment Slide3 Structure 1 Slide(s)10 Structure 2 Slide(s)10 Structure 3 Slide(s)10 Content of Questions #1-33 Content and Analysis of Question #48 Grammar, Spelling, Mechanics, etc6 Overall Neatness, Professionalism, Creativity, and Organization (includes color choices, layout, etc) 10 Use of Class Time5 ItemPoints EarnedPoints Possible Title Slide2 House Information Slide(s)5 Down Payment Slide3 Structure 1 Slide(s)10 Structure 2 Slide(s)10 Structure 3 Slide(s)10 Content of Questions #1-33 Content and Analysis of Question #48 Grammar, Spelling, Mechanics, etc6 Overall Neatness, Professionalism, Creativity, and Organization (includes color choices, layout, etc) 10 Use of Class Time5