MCR-3U1 PLANNING FOR YOUR FUTURE
Believe it or not within the next ten years or so you will be successful at completing your
education, securing a career, making some big purchases like buying a car or a house and
maybe even getting married and starting a family!
In order to ensure your independence and success it is important for you to understand your
finances and manage them correctly.
In this ISU you will be:
Describing where you see yourself in 10 years
Selecting a potential career and discovering salary expectations for the field
Finding an affordable car
Finding living accommodations that are appropriate and affordable for your
Creating a budget that outlines your expenses for your chosen future
Changing your budget based on changes in your lifestyle
This ISU is an INDEPENDENT assignment. It is in your best interest to do the
work yourself since your future interests are being researched. If you are
caught plagiarizing and claiming someone else’s work as your own you will
receive a mark of ZERO!
THIS ASSIGNMENT IS WORTH 10% OF YOUR TOTAL MARK
FINAL DUE DATE: December 22nd, 2011
NAME: _______________________ MARK: _____/82= ________%
IMPORTANT: BEFORE PRINTING ANYTING FROM THE COMPUTER DO A PRINT PREVIEW TO
MAKE SURE YOU ARE NOT PRINTING MORE INFORMATION THAN WHAT YOU
PART 1: WHERE DO YOU SEE YOURSELF IN 10 YEARS? [10 TOTAL]
Answer the following questions in the blank provided. 
1. What kind of career will you have?
2. Are you married?
3. Do you have any children? Are you planning to? When?
4. Do you have any pets? What kind?
5. In what city do you see yourself living in?
6. What are your hobbies?
7. What do you do for entertainment?
8. How long do you plan to live with your parents after graduating university?
9. What charity would you donate to?
10. How often do you like to eat at restaurants?
For the title page of your ISU make a collage using magazine pictures, family pictures,
drawing etc. reflecting your 10 year plan. 
PART 2: SELECTING A CAREER 
Based on your interests and strengths, select a career that you can see yourself pursuing in
the future. Once you have decided on a career go to www.careercruising.com (User name:
durhamsep; Password: 10830 or 10370) to find out how much you can expect to make in
your future career. Print out proof of your salary and attach to the back of this
assignment. Highlight the name of your career and your salary. You also need to know
what sort of post-secondary education is required and how many years you will be in
school, to be successful in your field.
The salary listed is an estimate of the gross pay earned by professionals in the field. Gross
pay does not include deductions for things like income taxes, health and dental benefits,
and pension contributions.
Below is a chart that indicates the percentage of your pay check that is automatically
deducted for income tax contributions.
Salary Range ($) % income taxes
Lower Limit Upper Limit
0 8 376 0
8 377 8 839 16
8 840 34 757 21.30
34 758 36 377 24.40
36 378 61 205 31.15
61 206 69 516 32.98
69 517 72 101 35.39
72 102 72 755 39.41
72 756 118 284 43.41
118 285 Up 46.41
Assuming you get paid bi-weekly divide your salary by 26. This is the amount you will make
per paycheque. Given that there are approximately two pay cheques per month your
monthly income will be on average the amount of two pay cheques.
Career Choice 
Post Secondary Education
Required (How many years,
college, university etc.) 
Gross Salary (Assume entry
level salary) 
Income Tax Paid 
_____________ x _____________ = ______________
Gross salary Income tax % Income tax paid
Net Salary 
_____________ - ________________ = _________
Gross salary Income tax paid Net salary
Amount of each pay cheque
(Net Salary/26) 
(Pay cheque amount x 2) 
PART 3: FINDING A CAR YOU CAN AFFORD 
Look at the Canadian websites of different car dealerships. Choose a vehicle that you might
like to own in the future. It should be the current model year of the car.
Print off a copy of the advertisement for the vehicle of your choice and attach it to the
back of your ISU. Your advertisement must not only show the type of car it must also show
the price of the car and the cost of the options. Highlight the name of the car, the cost of
the car, and the cost of the options.
Complete the chart below in order to determine the actual cost of your chosen vehicle.
Make and model of car
Base price $
Cost of all options $
Other costs (freight, PDI) $
Price of car $
HST 13% $
TOTAL COST OF CAR $
Financing to own a vehicle:
Suppose you have $5000 to use as a down payment on the car you are financing. Subtract
that from the price of your car. This is the amount you will need to finance.
In order to determine if your vehicle is affordable in terms of your life situation, go to
www.tdcanadatrust.com, click personal credit from the menu on the left of the screen.
Then click loan calculator under the tools and resources menu on the right side of the
Enter the loan amount you require (cost of car minus down payment)
Enter an interest rate of 7%
Choose the 5 year term option
Enter the information in the following chart
Amount of Monthly Payment
What is your cost of borrowing?
What does the cost of borrowing
In addition to monthly payments there will be other costs associated with owning a vehicle.
Additional cost required for: Estimated MONTHLY amount
PART 4: FINDING LIVING ACCOMODATIONS 
In order to determine how much you can afford to spend on your living space go to
www.canadatrust.com and select “Mortgages” from the menu on the left. Once on the
mortgage website click on “How much can I afford-Calculator” from the “Mortgage Tools”
menu on the right.
Information you will need:
Gross Household income (if married $
multiply your annual gross salary by
Household Debt *click on green calculator to enter amounts
Loan 1 amount (Car loan-monthly) $
*double this amount if you have 2 cars
*click on the (+) to add a loan
Loan 2 amount (student loans monthly: $
$200 university, $100 college)
*double this if you are married
Credit Card $5000 credit limit
Lease Amount $0
Property Taxes $4000 estimated annually
Heating Costs $125 estimated monthly
Condo Fees $0
Down Payment $50 000
Interest Rate Choose “enter your own rate” from the
drop down menu. Then choose 5 year term
closed and enter 6.5%
Amortization Period Choose 25 years
Purchase Price of Property $
Mortgage Amount $
Monthly Mortgage payment over term $
Now that you know how much you can be approved for. Go to www.mls.ca and find a living
space for you.
***Once you find a place you would like print off the summary and attach it to the back of
the assignment. Your listing must show the price of the house and where it is located.
This should match your introductory paragraph (Where do you live?) Highlight the price of
the house or condo, the condo fees if there are any and the location.
If the price of the property is different from the amount you are approved for go to the
TD Canadatrust mortgage homepage and click “Mortgage payment Calculator” from the
menu on the right. This will tell you your new monthly mortgage payment based on the
property you chose. Don’t forget to subtract your $50 000 down payment from the initial
purchase price of the property to determine amount of mortgage. Use the same interest
rate of 6.5% and a 25 year amortization period.
Print the Calculating Mortgage Payment page and attach it to the back of the assignment.
Purchase Price of $
Amount of your mortgage $
(subtract the $50 000)
Monthly Payment $
NOTE: If you have decided to purchase a condo do not forget to add your monthly
maintenance fees to the monthly mortgage amounts (show this work).
PART 5: AMORTIZATION SCHEDULE USING SPREADSHEET 
The purpose of an amortization schedule is to determine how much of your monthly
mortgage payments are used to pay interest versus paying down the principal amount.
Follow the instructions below to create your own amortization chart and then answer the
1. Open a new spreadsheet in Excel
2. Copy the cells EXACTLY as you see them in the spreadsheet. To make column A
wider click and drag the line between columns A and B
A B C D E
1 Amortization schedule
4 Annual interest rate:
5 Amortization period (years):
6 Monthly payment:
8 Payment Monthly Interest Principal Outstanding
9 Number Payment Paid Paid Principle
10 0 =B3
11 =A10+1 =$B$6
3. In Cell B3 enter Principal amount of YOUR mortgage
4. In Cell B4 enter Annual interest rate of 6.5% as a decimal not percent
5. In Cell B5 enter 25
6. In Cell B6 enter =round(B3*B4/12/(1–(1+B4/12)^(–B5*12)),2)
7. In Cell C11 enter =round(E10*$B$4/12,2)
8. In Cell D11 enter =B11–C11
9. In Cell E11 enter =E10–D11
10. Save your table as “Amortization Schedule”. Select cells A11 through E 11 and down to
row 22. Choose Edit, Fill Down to extend the table for 12 payments. In the spread sheet
change any numbers that should be written as money so that they appear as currency.
FORMAT ALL THE CELLS that should be currency (ex. not the payment number) by
choosing Format, Cells… Number, Currency, OK.
11. Use the SUM function in cells B23, C23, D23 to find the total amount paid, the total
interest paid, and the total principal repaid in the first 12 payments.
12. Highlight cells A1 through E23. Go to File and select “Print Area”. Hit ok.
Print the highlighted cells for the first year and hand in with your ISU
13. Delete cells B23, C23 and D23
14. Select cells A22 through E 22. Choose Edit, Fill Down to extend the table to show the
monthly payments over the 25-year amortization period. You can drag the handle
(shaped as a plus sign) at the bottom-right-hand corner of the table to extend it like a
15. Use the SUM function to show the total amount paid, the total interest paid, and the
total principal paid and answer the following questions.
16. How many payments are required to completely pay off your mortgage?
17. Over the course of your mortgage, assuming the interest rate remains constant, how
much interest have you paid?
18. In the end, how much did you really end up paying for your house?
Print the cells corresponding to the last ten payments of your mortgage as well as the
cells containing the sums of each column that you used to answer the questions. DO
NOT PRINT ALL 25 YEARS!!
PART 6: SETTING UP A BUDGET 
In the chart below decide on a monthly budget which will be appropriate for the lifestyle
you have chosen. Before filling in the chart brainstorm all of the expenses you can expect
to have in any given month of your future life.
If you have a spouse, make sure to include their income as well as their expenses in your
budget. Fill this information in on Budget #1.
Monthly net income
Expenses Approximate monthly cost
heating and AC
EXPENSES FOR CAR (x 2 if you have 2)
sports and/or clubs
student loan (x 2 if you are married)
Income Expenses (this must be a positive
number to be a balanced budget)
PART 7: FINAL QUESTIONS
1. Describe, in point form, an advantage and disadvantage of each of the following: buying
a new car, leasing a new car and buying a used car.
Buying New Car: Leasing New Car: Buying Used Car:
Advantage: Advantage: Advantage:
Disadvantage: Disadvantage: Disadvantage:
  
3. In point form, provide two advantages and two disadvantages of buying a house and
renting a house.
Buying a House: 2 Advantages: 2 Disadvantages:
Renting a House: 2 Advantages: 2 Disadvantages:
4. Explain why you think that credit cards can sometimes lead people to get into financial
Final ISU Checklist
□ Fully complete ISU booklet
□ Proof of Salary
□ Vehicle advertisement
□ Printed copy of Mortgage Payment Calculator
□ Copy of MLS or advertisement for your house
□ 2 print outs from your amortization schedule
□ Final questions answered