As you progress through this exercise you need to monitor changes in the total debt
The debt to income ratio must remain at 1:2. Total debt includes all expenses plus
In the last lesson you calculated your monthly salary. Now we want to figure the
Hourly Rate > 20
Hourly Rate between 10 and 20
Hourly Rate < 10
Rent v. Mortgage
Rent a house or appartment. The ratio of rent to monthly salary is 1:4
You can choose to purchase a house. The payment on the house will have a ratio
of 1:100 (Payment to purchase price less a 15% down payment).
Buy a car
Use the price of the car you found above to determine your monthly payment. The
down payment will have a ratio of 1:10.
The monthly auto payment will be calculated using a ratio of loan amount to payment
of 40 to 1.
Submit your workbook
Finish adding the expenses. Subtract expense from the income. Subtract taxes and
finish the net income calculation.
Make sure to check your math before submitting your workbook?
If you are done early complete a report on how buying a
Include your description of the differences between
The report will be 1 page double spaced in 12 point Arial font.
Pictures of Monopoly game , Retrieved February 17, 2006, from Hasbro.com.