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Week3 Assignment 1 (W3A1)
URL: http://online.vitalsource.com/books/1111508801
Chapters 6, 7, 8
Assignment Directions:
Please show steps on how you got your answer.
Use the following scenarios and calculate monthly loan payment amounts: calculate monthly loan payment amounts given the following scenarios:
1. Calculate the monthly payment over 10 years of a subsidized student loan in the amount of $25,000 at 3.4%.
2. Calculate the monthly payment over 10 years of an unsubsidized student loan in the amount of $25,000 at 6.8%.
3. Calculate the monthly payment over 5 years of a car loan in the amount of $25,000 at 3% interest for a graduate with good credit.
4. Calculate the monthly payment over 5 years of a car loan in the amount of $25,000 at 15% interest for a graduate with a poor credit history.
5. How do interest rates differ on subsidized loan versus unsubsidized loan? How does this impact the budget of a recent graduate in terms of their expenses for a month?
6. How do interest rates differ on car loans of a student with good credit versus a poor credit history? How does this impact the budget of a recent graduate in terms of their expenses for a month?
7. Kathy Smith earns $40,000 a year. She pays 30 percent of her gross income in federal, state, and local taxes. She has fixed expense in addition to taxes of $1200 per month and variable expenses that average $900 per month. What is her net income (surplus or deficit) for the year?
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Assignment Grading Rubric:
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Criterion |
Excellent (5) |
Very Good (4) |
Good (3) |
Competent (2) |
Inadequate (1) |
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Requirements |
All criteria met: |
One of the following criteria was not met |
Two of the following criteria was not met: |
Three of the following criteria was not met: |
Four of the following criteria was not met: |
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*Accurate numeric answers submitted |
* Assignment not submitted |
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*Substantial qualitative answers justified and validated |
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* No grammar or spelling errors |
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* Organized structure of answers and points presented |
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* APA standards met for citations and references |
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Instructor’s Rationale and Score |
Week 3 Assignment 2 (W3A2)
Part One:
Based on the following information, prepare a monthly and yearly budget for Cathy include. Average Income Net monthly pay is $1,400 Average Monthly Expenses
Rent $410
Insurance 60
Utilities 50
Gasoline 60
Clothing 60
Entertainment 100
Savings 120
Telephone (landline) 15
Car payment 150
Car repairs 20
Groceries 150
Personal care 50
Miscellaneous 155
Part Two:
1. Revise the budget when Cathy agrees to share her apartment with a friend. Some expenses can be shared equally. Assume the telephone expense increases to $30, utilities to $60, and insurance to $70. These expenses along with rent are shared equally. What will you advise Cathy to do with the extra funds of $205 she will receive from a roommate?
2. When Cathy chooses a roommate how will the credit history of potential roommates impact her decision?
3. Should Cathy consider increasing the insurance expense? If so, what type of insurance?
Part Three: Write a summary in an essay form of no less than 300 words to detail your budget and cover the following points:
. What aspect of financial planning is new to you?
. What type of savings and investment strategies would you engage in within the next 5 years?
. What strategies would you practice to maintain favorable credit?
Assignment Grading Rubric:
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All 3 parts are answered substantially, where points are justified and validated |
Assignment not submitted | ||||
| No grammar or spelling errors | |||||
| Organized structure of answers and points presented | |||||
| APA standards met for citations and references | |||||
