# Course Project

• For the first part You will summarize these to include,  amortization, online brokerages, DRIPS and the various types of bonds of three of the 6 companies of section 2.

The second section is addressing the new criteria. Again, you will provide totally new content for the below criteria:

• Analyze six online trading sites, and determine the requirements for trading, including the price per trade.

The scenario is designed to help you determine and evaluate the payment amount of a car loan and a mortgage, based on the assumption that your household income is \$36,000 per year or \$3,000 per month. Based on your income, you may spend 28% of your monthly income on housing, and 10% on a car loan. You are to put a 3% down payment on the house and a 10% down payment on the car.

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• What is the maximum car payment and mortgage payment you can afford with the following conditions: your monthly household income, 10% for the car payment over 4 years, and 28% for the 15 year mortgage payments?
• Create a complete amortization schedule for the car, using the information above.

Key considerations in completing the project of ammortization:

·         1) Use the information from the project to first find the present value of the monthly payments. This will be you “loan” amount or original principal.

·         2) You are advised to use a 7% interest rate and 60 month time period.

·         3) A key detail of the project is that the you find the original value of both the home and car. The down payment amount deducted from the original value becomes the original principal.

·         4) How does one find the original value? Here is the formula : Present value of the payments / (1-down payment percentage). …place the down payment percentage in decimal form. For example, lets say you bought a boat with a 5% down payment and the present value of your boat payments was 17,000 . Thus, 17,000 / (1-.05) = 17,000 / .95 = an original value of 17, 894.74 for the boat.

·         5) After you obtain #4 above, just place this amount in House Price in your spread sheet. The other two items to fill in on the spreadsheet is the down payment percentage (as a percent) ,number of payments and annual interest rate. Again, remember that your amortization should be monthly.

Evaluate the amortization schedule you completed.  What role does the amortization schedule play in your organization?

• Evaluate six companies (look for investor information) that offer DIPs or DRIPs. Why is the relevant?
• Evaluate US Treasuries, Municipal Bonds, and Corporate Bonds.  Why is this relevant to an organization?

Submission Details:

• Submit a 5-6 page Microsoft Word document, using APA style. Remember to cite your references and to place the citations in the body of the assignment.

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