Contemporary Mathematics

Projects

Projects

In this project, you will create a budget based on a job you are likely to have after you graduate.

1. Go online and research the average starting salary for the profession you are studying for. Use at least two sources. Be sure to record the web address from your search.
2. Approximate your monthly take-home pay. You may use the SmartAsset website to estimate this.
3. Use the 50-30-20 budget philosophy to determine how much you should budget for needs, wants and savings, or extra debt reduction.
4. Create a list of likely expenses. This list must include rent/mortgage, utilities, food, and school loan repayment. You may also want to include car payments, gasoline, and other items.
5. Categorize each expense as need, want, or savings.
6. Using the amounts found in step 3, decide how much to allocate to each of your expenses. It may help to quickly research how much rent is where you want to live.
7. Discuss the choices you had to make, and why you prioritized some expenses over others.

Interest Rate and Time: What Is the Relationship?

The interplay between interest rate and time for an annuity is not easily seen. How the amount that must be deposited per compounding period, $pmtpmt$, changes based on the time and interest rate would be useful to understand. In this project, you will explore this relationship. We will use a fixed future value of $FVFV$ = $1,000,000 and a fixed number of periods per year, 12 (monthly compounding). With those, we’ll find various annuity payments that must be made to reach the goal. The annual interest rate for the investment is in the top row. The number of years for the investment is in the left column. In each cell (or box), find the monthly payment necessary to reach the goal of$1,000,000.

Annual Interest Rate
1.5% 2.0% 3.0% 5.0% 7.5% 10.0%
Number of Years 10
15
20
30
40
45