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This Is Your Life

Project
Maura McKenzie

College
I would like to be some type of doctor when I grow up, preferably working with
Doctors Without Borders, so I will be attending a Pre-Medical undergraduate program
and Medical graduate program as well as attending residency. For undergraduate I plan
on going to Appalachian State University and to University of North Carolina Chapel Hill
Medical school for graduate. In total, not including residency, I will be in college for eight
years. My starting year at ASU tuition should be approximately $20,461 and tuition goes
up 3.1% every year from that. Medical school at UNC should cost about $9,041 a year.

Lets Talk Money


The bank I use is Clarkston Brandon Community Credit Union. CBCCU has an
annual interest rate of 0.1% on savings accounts and money markets and an annual
interest rate of 0.3% on a Certificate of Deposit. To find how much money I will have
with each when I start college, I used the equation
account or money market my equation will be

A=P( 1+r)n . If I use a savings

1
1000(1+.001) , which equals $1001. If I

use the certificate of deposit, the equation will be

1
1000(1+.003) , which equals $1003.

Aunt Edna is giving me $1,878.58 by investing in an annuity, and my parents have


saved $63,000, so I will need to borrow $97,570 to cover the rest of my college career.
To find out how much money I need to invest into a certificate of deposit now to cover

kt

my shortfall I used the equation

equation I get

97,570=P (1+

r
A=P( 1+ )
k

, when I put my information into this

.003 (12)(6.5)
. This calculates out to be $95,686.05 that I
)
12

need to invest now to cover college. I found that my monthly loan payment will be
$867.55 for both government and private loans. To find this I used the equation

P=

get

r M
n
, when I put my government loan information into this equation I
r nt
1(1+ )
n

P=

(.0466)(27000)
12
which calculates to be $281.91, when I put my private
.0466 (12)(10)
1(1+
)
12

loan information in I get

P=

(.0574)(70570)
12
(12)(15)
which calculates to be $585.64,
.0574
1(1+
)
12

then I added those two values together. After paying off my loans I will have spent
$139,244.96, $41,674.96 of that being interest to the bank. If I increased my monthly
government loan payment it would take me 8.16 years to pay off the loan and I would
save $1,328.67.

Talk About Your Career and Your Future


As a doctor my starting salary, after residency, should be $139,510. My monthly
salary is $11,625.83 and 30% of that is $3,487.75, which is the maximum house
payment I can make. To find the maximum price of a house that I can buy I used the

equation

P=

r M
n
, if I have a 5.5% interest rate on a 30 year mortgage the
r nt
1(1+ )
n

equation would be

3487.75=

( .055) M
12
, the maximum price that I can pay
.055 (12)(30)
1(1+
)
12

for a house is $614,268.68. I found a house in Asheville, North Carolina for $609,000.
The address is 44 White Ash Drive, it is 2,534 square feet, has four bedrooms, three full
bathrooms, a half bath, and a two car garage. The down payment on my house will be
$60,900 and Aunt Edna is giving me $18,632.26 to cover the down payment.
After the down payment I need to borrow $548,100 to cover the rest of my house. If I
take a 30 year mortgage, my monthly payment on my house will be $3,112.05. With the
mortgage I will end up paying $1,181,238.55 on my house over the 30 years,
$572,238.55 of that is interest to the bank.

Perhaps a Bit of Reality


I found an apartment in Oakland County that is $880 a month. I will have 28% of
my salary taken out for taxes, which leaves me $8,370.59 per month. I found a used

2013 Ford Fusion SE for $13,360. When I use the equation

plan to pay off my car in three years, I get

P=

P=

rM
n
r nt
1(1+ )
n

(.06)(13360)
n
.06 (12)(3)
1(1+
)
12

and I

which ends up

equalling $406.44 for my monthly payment. The credit card that I used for $2000 in
college will take me 88.368 months to pay off if I pay $41 a month with an interest rate

of 18%. I found this by using the equation

information the equation looks like

41=

P=

r M
n
r nt
1(1+ )
n

again. With this

(.18)(2000)
12
. I will end up having to pay
.18 nt
1(1+
)
12

$1623.09 in interest to the credit card company. All of my monthly bills add up to
$2744.99 and I will have $5626.60 to spend each month after taxes. My monthly debt to
income ratio is 2744.99/11625.83. If I got a roommate I would save $625 a month. 40
years from now I plan to still be in the medical field and have three children, hopefully at
least two of them adopted. I would like to either be living in North Carolina or

somewhere in Europe and have spent the majority of my time working in foreign
countries where my help is more needed.