this is a Math project. It has a lot of questions but there really easy to answer. I just dont have time to do it
The
purpose of this activity is to look at how investment in your education will
pay off when you graduate from college and get a job in your desired field. We will
be comparing your future finances with those of an unskilled worker. Each section of the project asks you to
compare your future values to the unskilled worker. You should make use of absolute
and relative change in some of the comparison statements in your paper. You will perform the calculations for
this project using formulas from the formulas sheet and using an Excel sheet,
at the end, to verify your results. Your submission should also include the
Excel sheet. Round all your answers to two decimal places
unless stated otherwise.
1.
State
what your desired area of employment is.
2.
Why
did you choose this career?
3.
How
much schooling is needed for this job?
Part 1: Income
Comparison
We
will use the Median (middle value) as a measure of a typical income instead of
the average because the middle value is not influenced by very big or very low
incomes. It’s the 50th percentile (50% of incomes are below the
Median and 50% of incomes are above the Median).
Research
your expected income after you graduate from college. Assume that you obtain
whatever level of education needed to enter your desired area of employment and
that you will have a salary equivalent to the annual median salary found at:
https://www.bls.gov/oes/current/oes_oh.htm
You will
need to click on your desired career to see the Annual Median Wage. If using a
different source, you must cite it.
4.
Annual
Median salary is: __________________
Assume
that the annual median income for an unskilled worker is $25,000, use this
value as the reference value (old value) and the College graduate income as the
new value (most recent) in comparison statements to find the absolute and
relative change, as they are an excellent way to compare values.
5.
Absolute
change: __________________
Formula used: __________________
(Write only the number of the formula from the formulas sheet)
6.
Relative
change: __________________
Formula used: __________________
(Write only the
number of the formula from the formulas sheet)
7.
Use
the results for absolute and relative change to make at least one statement
comparing your expected median annual salary with that of the median annual
income of an unskilled worker.
Calculate
the monthly gross income for both workers.
8.
Your
expected monthly gross income is: __________________
9.
Unskilled
worker monthly gross income is: __________________
10. Explain
how you found the monthly gross income: __________________
Find the absolute and relative change for the
monthly gross income.
11. Absolute
change: __________________
12. Relative
change: __________________
13. Statement(s):
Part 2: Housing
Comparison
Assume that you and your unskilled worker counterpart
plan to spend 1/4th (25%) of your gross monthly income on house payments.
Calculate the percentage of your monthly salary to
mortgage (which gives you the highest affordable monthly payment for a house
mortgage).
14. Highest affordable monthly payment for a
house: __________________
Calculate the percentage of the monthly salary to mortgage for the
unskilled worker.
15. Highest affordable monthly payment for a house: __________________
Assume a fixed rate 30-year mortgage with an APR of 7%. Calculate the
highest price for a house you could afford with your predicted salary.
16. Highest
affordable price for a house: __________________
17. Formula
used: __________________
(Write only the number of the
formula from the formulas sheet)
18. Explain
how the house value was determined from the formula used.
Calculate
the highest price for a house that the unskilled worker can afford to borrow
under those conditions.
19. Highest affordable price for a house: __________________
Make at least
one statement comparing the highest price of the house that an unskilled worker
can afford and that you expect to be able to afford (Remember to use absolute
and relative change).
20. Absolute
change: __________________
21. Relative
change: __________________
22. Statement(s):
23. Research
housing costs in an area where you would like to live. Make a short description
of the house you selected including the location and why you selected it. Be
specific as to why you selected the location, layout/size of the house, etc.,
and discuss the features that caught your eye.
24. House
Value: __________________
25. Reflect
on the price of the home that you could afford. Do these values meet your needs
and expectations, or should you consider other housing options?
26. Will your future salary allow you to afford the house you
want, or should you consider other housing options?
27. Yes
or No: __________________ Why? __________________
28. How
much more or less must you spend to get the house you want?
29. Other
housing options:
Part 3: Car
loan
Assume that you
and your unskilled worker counterpart plan to spend 8% of your gross monthly
income on a car payment. Calculate the
percentage of your monthly salary to a car loan (which gives you the highest
affordable monthly payment for a car).
30. Highest affordable monthly payment for a car: __________________
Assume a 6-years car loan with a 6% interest rate. Calculate the highest
price for a car you could afford with your predicted salary. Explain how the car value was
determined.
31. Highest
affordable price for a car: __________________
40. Explain:
41. Reflect
on the price of the car that you could afford. Do these values meet your needs
and expectations, or should you consider other car options?
Calculate the
highest price for a car that the unskilled worker can afford to borrow under
those conditions.
42. Highest
affordable price for a car: __________________
Make at least one statement comparing the
largest price of the car that an unskilled worker can afford and that you
expect to be able to afford.
43. Absolute
change: __________________
44. Relative
change: __________________
45. Statement(s):
Research the
car prices for the car that you would like to drive.
46. Car
cost: __________________
47. Will your future salary allow you to afford
the car you want, or should you consider other car options?
48. Yes or No: __________________Why? __________________
49. How
much more or less must you spend to get the car you want?
50. Other
car options: __________________
Part 4: Retirement
Your
future employer will match your 401k investments 50%, but unskilled workers do
not receive help with their retirement plan from their employers. You can
invest 5% of your salary in a 401k investment that will earn a 8% annual
return.
Calculate the percentage of your monthly salary to
your retirement plan which gives you the regular payment (deposit) amount.
51. Regular payment: __________________
52. Regular payment for unskilled worker: __________________
Make at least
one statement comparing the regular payment towards retirement that an
unskilled worker can deposit and that you expect to be able to deposit.
53. Absolute
change: __________________
54. Relative
change: __________________
55. Statement(s):
Determine
the balance in the accounts after 40 years of investments for your predicted
salary.
56. Balance in your retirement funds: __________________
57. Formula
used: __________________
(Write only the number of the
formula from the formulas sheet)
58. Reflect
on the value you found, does this value meet your expectations, or will you
change your investment strategy?
Determine the balance in the accounts
after 40 years of investments for an unskilled worker’s salary.
59. Balance in the retirement funds for an
unskilled worker__________________
Make
at least one statement comparing the balance of the 401k investment for the
unskilled worker and for your expected salary.
60. Absolute
change: __________________
61. Relative
change: __________________
62. Statement(s):
Experts recommend having 10 times your
salary in funds when you retire. How many years of investing would it take each
of you to reach this savings goal?
63. Number
of years (yours):__________________
(Round up your answer to the whole year)
64. Number
of years for an unskilled worker: __________________
(Round up your answer to the whole year)
65. Formula
used: __________________
(Write only the number of the formula from the formulas
sheet)
66. Explain
how the time to reach the saving goals is determined.
Calculate
the number of years it would take for the 401k investment of the unskilled
worker salary and for your expected salary to reach $500,000.
67. Number of years (yours):__________________
(Round up your
answer to the whole year)
68. Number of years for an unskilled worker:
__________________
(Round up your answer to the whole year)
Make
at least one statement comparing the time it would take for the 401k investment
for the unskilled worker salary and for your expected salary to reach $500,000.
Part
5: Raises
The
unskilled worker’s income is not expected to increase over the next four years,
which suggests that there are not many opportunities for increased pay or advancement,
even with several years of experience. But assume that your field will
guarantee you a 3.25% raise on your annual salary each year for the next four
years.
Determine
what your new annual salary will be after four years of raises.
69. New
Salary:__________________
70. Formula
used: __________________
(Write only the number of the formula from the formulas sheet)
71. Make
at least one statement comparing your initial salary with the salary after 4
years of raises.
72. Using
this new income, recalculate the value of a house that you could afford from Part
2. Also recalculate the car price you could afford from Part 3, and the 40-year
401k information from Part 4 using this new income (use the new income, 6 years
for the car loan and 40 years for retirement, don’t worry about the
complication of 4 years of changes).
73. Address how your increased salary might impact
the house and the car you can afford and 401k values. Include the updated
values for the house and your 401k.
74. Determine
how long it will take (rounded up to the whole year) for your salary to be
twice as much as when you started.
75. Formula used: __________________
(Write only the number of the
formula from the formulas sheet)
76. If
the unskilled worker also received the same percentage raise. How long would it
take for them to make twice as much as when they started (rounded up to the
whole year)
77. Based
on the salary increases, compare the determined years for your salary and the unskilled
worker’s salary to double.
Part 6:
Thought Question
Based on your
results for Parts 1-5, what single best advice would you give to someone who is
not sure about investing in education and pursuing a college degree? Make sure
you provide support for your advice using what you learned from this project.
Part 7:
Checking your results in the Excel Template
o
Open
the Excel template.
o
Only
B2 and C2 cells shouldn’t have a formula. All the other cells should have a
formula.
o
Enter
your expected income in the “College Graduate” cell (B2). Make sure that the
results you got for the on your project match with the results obtained by the
excel sheet.
