question archive As an Ivy Tech student, you are making an investment in your education

As an Ivy Tech student, you are making an investment in your education

Subject:MathPrice: Bought3

As an Ivy Tech student, you are making an investment in your education. This project will look at how that investment will pay off if you graduate and get a job in your desired field. 

Assume that the median annual income for a high school graduate is$20,000. This is the value that you will be comparing your expected salary and lifestyle to in the following areas: 

1) Income Comparison: Research your expected income after you graduate college. Assume 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: http://www.bls.gov/oes/current/oes_in.htm#27-0000 *You will need to click on your desired career in order to see the Annual Median wage. 

? Your reflection paper should explain what your desired area of employment is and what the median annual salary for that position is.

 

? Your reflection paper should contain at least one statement comparing your expected salary with that of the median income of a high school graduate. 

 

2) Housing Comparison: Assume that you and your high school graduate counterpart plan to spend 20% of your gross income on house payments. Look up the current fixed rate APR for mortgages and use Excel to determine the largest value of a house that each of you can afford under those conditions.

? Your reflection paper should contain at least one statement comparing the value of the house that a high school graduate can afford and that you expect to be able to afford.

 

? Explain in your reflection paper what Excel function was used for these calculations. Cite what source you used to find mortgage rates.

 

? Research housing costs in an area where you would like to live.Will your future salary allow you to afford the house you want, or should you consider other housing options? How much more or less must you spend to get the house you want? Cite what source you used to find housing costs.

 

3) Raises: The high school graduate's income is not expected to increase over the next five years, but assume that your field will guarantee you a 3% raise on your annual salary each year for the next five years. Determine what your new annual salary will be given these five yearsof raises. Using this new income, recalculate the mortgage from part 2. 

? Your reflection paper should contain at least one statement comparing your initial salary with the salary after 5 years of raises. 

 

? Your paper should explain how you determined the increased salary.

 

? Your paper should address how your increased salary might impact your mortgage value.

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