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.
You will be comparing your future
finances
with someone who is not a college
graduate.
Assume that t
he median annual income for a high
school graduate is
$
19
,000
, use this value in comparison statement
s
.
You should make use of
absolute and relative change
in some of the comparison statements in
your paper
(
without using the words absolute and
relative change
)
.
Be creative!
1)
Income Comparison:
Research your expected income after you
graduate. Assume you obtain whatever level of education needed to
enter your desired area of employment
. We recommend using
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.
If using a different source, you must
cite it.
◻
Your reflection paper should explain
your desired area of employment and the median
annual salary for that position.
◻
Your reflection paper should contain at
least
one
statement comparing your expected salary
with that of the median income of a high school graduate.
Remember that absolute and relative
change statements are an excellent way to compare values.
2)
Housing Comparison:
Assume that you and your high school
graduate counterpart plan
to
spend
25%
of your gross
monthly
income on house payments.
Research
the current
fixed rate
APR for
a 30-year mortgage
and choose one that might fit your
needs. Then
u
se Excel to
determine the largest value of a
mortgage
that
each of you can afford
to borrow
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
, as a college graduate
expect to be able to afford.
◻
E
xplain in your reflection paper what
Excel function was used
for these calculations.
Do NOT use cell references in your paper
.
Cite what source you used to find
mortgage rates.
◻
Research housing costs in an area where
you would like to live
.
W
ill 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)
Retirement Comparison:
401 k investments are expected to earn a
5
.
75
% annual return. Assume that
9
% of gross monthly income is to be set
aside for 401 k investment.
In addition, your future employer will
match 50% of your 401k investment, while the high school graduate
’
s employer will match 25%.
Use Excel to determine the balance on
such a 401 k after 40 years of investment for the high school
graduate and for your expected income.
◻
Your reflection paper should contain at
least
one
statement comparing the
balance
of the 401 k investment of the high
school graduate and for your expected salary.
◻
Explain in your reflection paper what
Excel function was used for these calculations.
◻
Your reflection paper should contain a
statement of whether or not
this
40-year balance
is feasible for you
to live on when you retire
.
4)
Retirement Comparison Part 2:
How much money
is the recommendation for you
to retire?
Research this question to find the
amount you would be comfortable with
when you retire
. Then, s