Financial Project
As an Ivy Tech student, you are making an investment in your e
Financial Project
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 the median annual income for a person who is only a high school graduate is
$31,760 (although this may not be accurate for Indiana residents). Use this value in comparison statements with proper
absolute and relative change statements.
In this project you are required to do the following:
Create an Excel spreadsheet to help calculate the correct values for housing and retirement. Reach out to your instructor
if you need assistance with how to find mortgage or retirement values. You will use the PV, FV, PMT formulas in Excel.
Your typed responses for this project will consist of answering short-answer questions given below. Each short-answer
should be a minimum of 3 sentences and 50 words. Use proper quantitative reasoning and wording to address the
solution. This should clearly convey your message to a reader who is not taking Math 123. Make sure to use your Word
document to answer “what if” questions with specific values and provide support for your statements. To do this, make
changes in your spreadsheet and analyze the results of the manipulations – be quantitative and specific with correct
absolute and relative change statements. Your answers to these questions will be typed in a Word document and
submitted in IvyLearn using the link to Project 2.
HINT: As you are writing your absolute or relative change sentence, make sure to address “more than” or “less than”
what value. Writing sentences such as, “The absolute/relative change is this value…” will NOT be counted as correct.
What is the meaning of an absolute or relative change in each scenario?
1. Answer the two following questions related to your median annual salary and that of the high school graduate:
Explain what job you have chosen and what has inspired you to pursue a career in that field. Use the
median salary from the following website: https://www.bls.gov/ooh.
How does your salary compare to the high school graduate using BOTH an absolute change and relative
change statement?
Car Loan
2. Assume you can afford to use 11.5% of your monthly gross income towards your monthly car payment. The
terms of the loan are 9.35% APR for 7 years.
What is the highest price car you can afford based on the information above? Be sure to show and explain
the Excel formula you used.
What is the highest priced car the high school graduate can afford based on the same information? Be sure
to show and explain the Excel formula you used.
Use an absolute or relative change statement to compare the highest priced car of the high school graduate
and yourself.
Retirement Account
3. Assume that your selected job has a retirement plan that allows you to save for 37 years.
Math 123 Quantitative Reasoning Project Due 7 March 2024
If 5.55% of your monthly income is put into a retirement account, how much should you expect if the
average annual return is 6.42%? Be sure to show and explain the Excel formula you used.
Using the same conditions, determine the amount a high school graduate should expect to have in their
retirement account? Be sure to show and explain the Excel formula you used.
Use an absolute or relative change statement to compare the retirement accounts of the high school
graduate and yourself.
4. Assume you are saving for retirement with the same stipulations as before (5.55% of your income at a rate of
6.42% for the account).
How long would it take for your account to reach $1 million dollars? (Keep your answer in years.)
How long would it take a high school graduate to reach $1 million dollars? (Use years for this also.)
Compare the amount of time taken to reach $1 million for you and the high school graduate. Use an
absolute change sentence to compare your answers.
Salary Increase
5. Your employer offers 2 options as an increase to your salary for the next year:
Option 1: You can have a 2.25% increase of your median annual salary.
Option 2: You can take an increase of $1500 added to your median annual salary.
Find the new annual salary for both Option 1 and Option 2 for the college graduate. Show your calculations.
Which option should you choose as a college graduate? Explain why using an absolute change or relative
change statement in your response.
Find the new annual salary for both Option 1 and Option 2 for the high school graduate. Show your
calculations.
Which option should the high school graduate choose? Explain why using an absolute change or relative
change statement in your response.