Contents
Personal Finance Decision Software
Version 4.0
Table of Contents
Worksheet
Financial Calculator Financial Statements Budget Checkbook Balance Credit Card Loan Worksheet Car Loan Rebate Lease Buy-Rent Affordability Mortgage Refinancing Life Insurance Disability Insurance Investment Return Bond Price
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Contents
Yield to Maturity College Savings Retirement 1 Retirement 2 Estate Tax
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Contents
Personal Finance Decision Software
Version 4.0
Table of Contents
Description
A worksheet that solves common time value of money problems. Prepares an income statement and balance sheet. Prepares a six-month budget. Helps to balance a checkbook Computes credit card balances and interest over a one year period. Calculates the monthly payment, total amount of payments, and interest paid on a fully amortized loan. Also calculates periodic loan balances. Finds the maximum car loan you can afford. Compares a cash rebate to a low finance rate on a new car. Compares the cost of leasing a car to the cost of buying the car--assuming the car purchase is financed. Compares the cost of buying a home versus renting. Computes the most you can afford to pay for a new home. Calculates the amortization schedule (first 60 payments) on a mortgage or other fully amortized loan. Computes the costs and benefits of refinancing an existing mortgage loan. Finds the amount of life insurance coverage you need. Finds the amount of disability coverage you need. Calculates the return from an investment. Finds the price of a bond.
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Contents
Finds the yield to maturity on a bond. Calculates the amount you need to save to meet future college costs. Computes the amount you need to be saving each year to meet your retirement goals. Calculates how much your retirement savings will be worth when you retire. Finds the amount of federal estate tax liability.
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Financial Calculator
Time Value of Money Worksheet
Purpose: This worksheet solves various types of time value of money problems. Directions: Replace the numbers in the yellow boxes with your numbers. Enter percentages as decimals (e.g., enter 5% as .05). 1. Find the future value of a present sum of money Enter annual rate of interest Enter number of years Enter present value The future value is 5% 10 $100 $162.89
2. Find the present value of a future sum of money Enter annual rate of interest Enter number of years Enter the future value The present value is 3. Find the present value of an annuity Enter annual rate of interest Enter number of years Enter annual annuity The present value is 4. Find the future value of an annuity Enter annual rate of interest Enter number of years Enter annual annuity The future value is 6% 5 $100 $563.71 5% 5 $100 $432.95 5% 5 $100 $78.35
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Financial Calculator
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Financial Calculator
me Value of Money Worksheet
of money problems. our numbers.
5. Find the annuity given a future value Enter annual rate of interest Enter number of years Enter the future value The annuity is 5% 10 $10,000 $795.05
6. Find the annuity given a present value Enter annual rate of interest Enter number of years Enter the present value The annuity is 5% 10 $10,000 $1,295.05
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Financial Statement
Financial Statement Worksheet
Purpose: This worksheet helps you prepare financial statements and calculates ratios. Directions: Replace the numbers in the yellow boxes with your numbers. Balance Sheet Assets Current financial assets Checking account Savings account Money market funds Total Long-term financial assets Mutual funds Stocks and bonds Pension 401(k) IRAs Other Total Fixed assets Home Auto 1 Auto 2 Furniture Personal property Other Total fixed Total assets $165,000 $13,000 $0 $15,000 $5,000 $5,000 $203,000 $249,500 Date prepared Net worth $12,000 $0 $0 $25,500 $0 $1,500 $39,000 $2,500 $5,000 $0 $7,500 Liabilities & Net Worth Current liabilities Rent Utilities Insurance Credit card Other Total Long-term liabilities Auto loan Student loans Mortgage Other Total Total liabilities
Income Statement Wages earned
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Financial Statement
You Spouse Other income Bonuses Interest & dividends Tax refunds Other Total income (Income & SSI taxes) Net income Expenditures Housing House payment (rent) Utilities Property taxes Maintenance Insurance Other housing Total housing Transportation Car payments Gas & repairs Insurance Registration Other transportation Total transportation Food & clothing Medical & dental expenses Child care Vacation & entertainment Student loan payments
$38,500 $43,000 $2,500 $1,000 $500 $0 $85,500 $16,000 $69,500
$12,000 $3,500 $1,500 $1,500 $500 $3,500 $22,500 $3,000 $1,500 $1,000 $200 $300 $6,000 $7,500 $1,500 $5,000 $3,500 $2,000
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Financial Statement
Credit card interest Life insurance premiums Cash allowances Other expenses Total expenditures Amount available for savings Financial Ratios Liquidity ratio Debt to total asset ratio Debt service ratio Financial-assets-to-net-worth
$0 $1,500 $5,000 $1,500 $56,000 $13,500
1.607 0.549 0.266 0.413
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Financial Statement
heet
alculates ratios.
$0 $200 $100 $200 $0 $500 $6,000 $3,500 $127,000 $0 $136,500 $137,000
$112,500
12/1/2000
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Budget
Six-Month Budget Worksheet
January-05 Actual $2,500.00 $2,000.00 $150.00 $100.00 $4,750.00 February-05 Actual $2,500.00 $2,000.00 $125.00 $150.00 $4,775.00
Item Cash Inflows Net salary (self) Net salary (spouse) Interest & dividends Other Total cash inflows Cash Outflows Fixed expenses Rent or house payment Car payments Other loan payments Insurance premiums Savings and investments Other fixed expenses Total fixed Variable Expenses Utilities
Budget $2,500.00 $2,000.00 $100.00 $100.00 $4,700.00
Difference $0.00 $0.00 $50.00 $0.00 $50.00
Budget $2,500.00 $2,000.00 $100.00 $100.00 $4,700.00
Difference $0.00 $0.00 $25.00 $50.00 $75.00
$950.00 $250.00 $0.00 $0.00 $300.00 $0.00 $1,500.00
$950.00 $250.00 $0.00 $0.00 $300.00 $0.00 $1,500.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$950.00 $250.00 $0.00 $400.00 $300.00 $0.00 $1,900.00
$950.00 $250.00 $0.00 $400.00 $300.00 $0.00 $1,900.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$300.00
$350.00
$50.00
$300.00
$275.00
($25.00)
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Budget
Food Medical & dental Clothing Personal care Vacation & entertainment Transportation expenses Gifts & contributions Personal spending money Other expenses Total variable Total expenditures Monthly Outcomes Actual cash inflows Actual cash outflows Surplus (deficit)
$400.00 $100.00 $200.00 $200.00 $200.00 $100.00 $100.00 $400.00 $100.00 $2,100.00 $3,600.00 January $4,750.00 $3,675.00 $1,075.00
$450.00 $0.00 $150.00 $250.00 $150.00 $125.00 $100.00 $450.00 $150.00 $2,175.00 $3,675.00 February $4,775.00 $4,325.00 $450.00
$50.00 ($100.00) ($50.00) $50.00 ($50.00) $25.00 $0.00 $50.00 $50.00 $75.00 $75.00 March $0.00 $0.00 $0.00
$400.00 $100.00 $200.00 $200.00 $200.00 $100.00 $100.00 $400.00 $100.00 $2,100.00 $4,000.00 Month April $0.00 $0.00 $0.00
$400.00 $150.00 $225.00 $175.00 $250.00 $150.00 $250.00 $400.00 $150.00 $2,425.00 $4,325.00 May $0.00 $0.00 $0.00
$0.00 $50.00 $25.00 ($25.00) $50.00 $50.00 $150.00 $0.00 $50.00 $325.00 $325.00 June $0.00 $0.00 $0.00
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Budget
Budget
March-05 Actual
Difference $0.00 $0.00 $0.00 $0.00
Budget
April-05 Actual
Difference $0.00 $0.00 $0.00 $0.00
Budget
May-05 Actual
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00
$0.00
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Budget
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total $9,525.00 $8,000.00 $1,525.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
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Budget
May-05 Difference $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Budget
June-05 Actual
Difference $0.00 $0.00 $0.00 $0.00
Budget $5,000.00 $4,000.00 $200.00 $200.00 $9,400.00
Six Month Total Actual Difference $5,000.00 $4,000.00 $275.00 $250.00 $9,525.00 $0.00 $0.00 $75.00 $50.00 $125.00
$0.00
$0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$1,900.00 $500.00 $0.00 $400.00 $600.00 $0.00 $3,400.00
$1,900.00 $500.00 $0.00 $400.00 $600.00 $0.00 $3,400.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00
$0.00
$600.00
$625.00
$25.00
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Budget
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
$800.00 $200.00 $400.00 $400.00 $400.00 $200.00 $200.00 $800.00 $200.00 $4,200.00 $7,600.00
$850.00 $150.00 $375.00 $425.00 $400.00 $275.00 $350.00 $850.00 $300.00 $4,600.00 $8,000.00
$50.00 ($50.00) ($25.00) $25.00 $0.00 $75.00 $150.00 $50.00 $100.00 $400.00 $400.00
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Balance
Checkbook Balancing Worksheet
Purpose: This worksheet will help you balance your checkbook. Directions: Replace the numbers in the yellow boxes with your numbers.
Enter the checks you've written but not shown on your bank statement
Number 411 413 416 417 418
Total amount of these checks Enter ending bank balance from your statement Add any deposits made but not shown on your statement Subtract any ATM withdrawals not shown on your statement Total checks not shown on statement This amount should equal the balance shown in your checkbook
$1,345.00 $125.00 ($125.00) ($346.48) $998.52
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Balance
Amount $34.56 $128.98 $98.33 $22.51 $62.10
$346.48
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Credit Card
A. Assuming a grace period on new purchases even if you carry a balance Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Beginning Balance $1,500.00 $1,357.50 $1,214.29 $1,070.36 $925.71 $780.34 $634.24 $487.41 $350.00 $201.75 $52.76 $0.00 $0.00 $0.00 $0.00 Monthly Interest Rate 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Finance Charge $7.50 $6.79 $6.07 $5.35 $4.63 $3.90 $3.17 $2.44 $1.75 $1.01 $0.26 $0.00 $0.00 $0.00 $0.00
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Loan Worksheet
Loan Payment Worksheet
Purpose: This worksheet calculates the monthly payment, total amount of payments, and total amount of interest paid on a fully amortized loan--such as a car loan. Directions: Replace the numbers in the yellow boxes with your numbers. Enter interest rates as decimals (e.g., enter 7.5% as .075). Enter the amount borrowed Enter the annual interest rate Enter the loan term (in years) The monthly payment is Total payments are Total interest paid is Loan Balance Outstanding Enter the amount borrowed Enter the annual interest rate Enter the loan term (in years) The monthly payment is Enter the number of payments made The outstanding loan balance is $15,000 7% 5 $297.02 24 $9,619.36 $15,000 7.95% 4 $365.84 $17,560 $2,560
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Loan Worksheet
et
unt of payments, and total amount
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Car Loan
Car Payment Worksheet
Purpose: This worksheet calculates how large of a car payment you can afford. Directions: Replace the numbers in the yellow boxes with your numbers. Enter percentages as decimals (e.g., enter 9% as .09). Enter your monthly take-home pay Enter the appropriate debt service ratio This is the most you should pay each month in installment debt Enter existing monthly installment debt payments This is the maximum monthly car payment you can afford Enter the annual rate of interest on car loans Enter the loan term (months) This is the largest car loan you can afford
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Car Loan
eet
nt you can afford. numbers.
$2,100 20% $420 $150 $270 8.5% 48 $10,954
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Rebate
Rebate or Low Finance Rate Worksheet
Purpose: This worksheet compares the true cost of a low financing incentive to a cash rebate. Directions: Replace the numbers in the yellow boxes with your numbers. Enter interest rates as decimals (e.g., enter 7.5% as .075). Rebate Enter the final price for the car Enter the amount of your down payment Enter the rebate This is the amount you're going to finance Enter the annual interest rate Enter the loan term This is your monthly payment This is the total interest you'll pay This is your total finance charges $20,000.00 $5,000.00 $1,000.00 $14,000.00 7.70% 36 $436.77 $1,723.87 $1,723.87
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Rebate
rksheet
cing incentive to a cash rebate.
Low Finance Rate $20,000.00 $5,000.00 $0.00 $15,000.00 3.90% 36 $442.19 $918.94 $1,918.94
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Lease
Lease-versus-Buy Worksheet
Purpose: This worksheet compares the cost of buying a car to the cost of leasing the car. Directions: Replace the numbers in the yellow cells with your numbers. Enter interest rates as decimals (e.g., enter 5% as .05). Leasing Enter the final cost of the car Enter the amount of your downpayment Enter fees and licensing costs Enter the monthly lease payment Enter the lease term (months) Enter the least termination fee Enter auto loan rate Enter the auto loan term (months) This is your monthly car payment (if you finance) Enter the after tax rate on savings This is the gross cost of each alternative Enter the value of the car at the end of the financing period This is the net cost of each alternative
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$20,000 $0 $0 $299 36 $500
4.00% $11,264.00 $11,264.00
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Lease
leasing the car.
Financing $20,000 $5,000 $0
7.50% 36 $466.59 4.00% $22,397.36 $14,000.00 $8,397.36
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Buy-Rent
Buy-versus-Rent Worksheet
Purpose: This worksheet compares the five-year cost of buying a home versus renting. Directions: Replace the numbers in the yellow boxes with your numbers. Enter interest rates and percentages as decimals (e.g., enter 3 % as .03). Purchase Option Enter the purchase price of the house Enter the amount of your down payment You are going to borrow Enter the mortgage loan rate Enter the mortgage loan term (years) Enter the number of points charged Enter other closing costs Your monthly payment is The amount of cash due at closing is Enter annual property taxes Enter annual homeowners insurance premium Enter annual cost of maintenance and repairs Enter cost of utilities (per month) Enter annual rate of appreciation (expected) Enter after-tax return on savings Enter your marginal tax rate Rental Option Enter your monthly rent Enter your security deposit Enter annual renters insurance premium Enter cost of utilities (per month) Enter after-tax return on savings One-Year Analysis Rent or mortgage payment Utilities Buy $7,204 $3,000 $750 $0 $300 $200 4.00% $110,000 $22,000 $88,000 7.25% 30 1.00 $2,000 $600 $24,880 $1,500 $450 $1,200 $250 3.00% 4.00% 28.00%
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Buy-Rent
Property taxes Insurance Maintenance and repairs Lost interest on savings (Mortgage repayment) (Appreciation) (Taxes saved) Total cost of housing Five-Year Analysis Rent or mortgage payment Utilities Property taxes Insurance Maintenance and repairs Lost interest on savings (Mortgage repayment) (Appreciation) (Taxes saved) Total cost of housing
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$1,500 $450 $1,200 $995 ($852) ($3,300) ($2,445) $7,752 Buy $36,019 $15,000 $7,500 $2,250 $6,000 $5,390 ($4,947) ($17,520) ($11,047) $38,646
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Buy-Rent
ersus renting.
Rent $9,000 $2,400
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Buy-Rent
$0 $300 $0 $0 $0 $0 $0 $11,700 Rent $45,000 $12,000 $0 $1,500 $0 $0 $0 $0 $0 $58,500
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Affordability
Home Affordability Worksheet
Purpose: This worksheet calculates the most you can afford to pay for a house. Directions: Replace the numbers in the yellow boxes with your numbers. Enter interest rates as decimals (e.g., enter 5% as .05). Enter your gross monthly income Enter the lender's affordability ratio This is the most you can spend on housing each month (including taxes and insurance) Enter estimated monthly property taxes and insurance This is the maximum monthly mortgage payment you can afford Enter mortgage rate Enter the mortgage term (years) This is the largest mortgage you can afford Enter the loan-to-value ratio This is the most expensive home you can afford Enter the number of points charged by the lender Enter other estimated closing costs This is the amount of cash due at closing
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Affordability
$3,800 25% $950 $150 $800 8.00% 30 $109,027 90% $121,141 1.00% $2,181 $15,385
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Mortgage
Mortgage Loan Worksheet
Purpose: This worksheet calculates a mortgage or other loan payment schedule for the first 60 payments Directions: Replace the numbers in the yellow boxes with your numbers. Enter the interest rate as a decimal (e.g., 7.5% should be entered as .075). Enter the amount you are borrowing Enter the loan rate (% per year) Enter the loan term (years) This is your monthly payment This is the total amount you'll pay This is the amount of interest you'll pay $150,000 6.00% 30 $899 $323,757
$173,757
Cumulative Payment Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Payment $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 Beginning Balance $150,000 $149,851 $149,701 $149,550 $149,398 $149,246 $149,093 $148,939 $148,784 $148,629 $148,473 $148,316 $148,158 $147,999 $147,840 $147,680 $147,519 $147,357 Interest $750 $749 $749 $748 $747 $746 $745 $745 $744 $743 $742 $742 $741 $740 $739 $738 $738 $737 Principal $149 $150 $151 $152 $152 $153 $154 $155 $155 $156 $157 $158 $159 $159 $160 $161 $162 $163 Ending Balance $149,851 $149,701 $149,550 $149,398 $149,246 $149,093 $148,939 $148,784 $148,629 $148,473 $148,316 $148,158 $147,999 $147,840 $147,680 $147,519 $147,357 $147,195
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Mortgage
19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
$899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899 $899
$147,195 $147,031 $146,867 $146,702 $146,536 $146,370 $146,202 $146,034 $145,865 $145,695 $145,524 $145,352 $145,180 $145,006 $144,832 $144,657 $144,481 $144,304 $144,126 $143,947 $143,768 $143,587 $143,406 $143,224 $143,040 $142,856 $142,671 $142,485 $142,298 $142,111 $141,922 $141,732 $141,541 $141,350 $141,157 $140,964 $140,769 $140,574 $140,377 $140,180 $139,981 $139,782
$736 $735 $734 $734 $733 $732 $731 $730 $729 $728 $728 $727 $726 $725 $724 $723 $722 $722 $721 $720 $719 $718 $717 $716 $715 $714 $713 $712 $711 $711 $710 $709 $708 $707 $706 $705 $704 $703 $702 $701 $700 $699
$163 $164 $165 $166 $167 $167 $168 $169 $170 $171 $172 $173 $173 $174 $175 $176 $177 $178 $179 $180 $180 $181 $182 $183 $184 $185 $186 $187 $188 $189 $190 $191 $192 $193 $194 $195 $195 $196 $197 $198 $199 $200
$147,031 $146,867 $146,702 $146,536 $146,370 $146,202 $146,034 $145,865 $145,695 $145,524 $145,352 $145,180 $145,006 $144,832 $144,657 $144,481 $144,304 $144,126 $143,947 $143,768 $143,587 $143,406 $143,224 $143,040 $142,856 $142,671 $142,485 $142,298 $142,111 $141,922 $141,732 $141,541 $141,350 $141,157 $140,964 $140,769 $140,574 $140,377 $140,180 $139,981 $139,782 $139,582
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Mortgage
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Page 37
Mortgage
ule for the first 60 payments.
Cumulative Interest $750 $1,499 $2,248 $2,996 $3,742 $4,489 $5,234 $5,979 $6,723 $7,466 $8,208 $8,950 $9,691 $10,431 $11,170 $11,908 $12,646 $13,383 Principal $149 $299 $450 $602 $754 $907 $1,061 $1,216 $1,371 $1,527 $1,684 $1,842 $2,001 $2,160 $2,320 $2,481 $2,643 $2,805
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Mortgage
$14,119 $2,969 $14,854 $3,133 $15,588 $3,298 $16,322 $3,464 $17,054 $3,630 $17,786 $3,798 $18,517 $3,966 $19,247 $4,135 $19,977 $4,305 $20,705 $4,476 $21,433 $4,648 $22,160 $4,820 $22,885 $4,994 $23,610 $5,168 $24,335 $5,343 $25,058 $5,519 $25,780 $5,696 $26,502 $5,874 $27,222 $6,053 $27,942 $6,232 $28,661 $6,413 $29,379 $6,594 $30,096 $6,776 $30,812 $6,960 $31,527 $7,144 $32,242 $7,329 $32,955 $7,515 $33,667 $7,702 $34,379 $7,889 $35,089 $8,078 $35,799 $8,268 $36,508 $8,459 $37,215 $8,650 $37,922 $8,843 $38,628 $9,036 $39,333 $9,231 $40,037 $9,426 $40,739 $9,623 $41,441 $9,820 $42,142 $10,019 $42,842 $10,218 $43,541 $10,418
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Refinancing
Mortgage Refinancing Worksheet
Purpose: This worksheet calculates the savings for a mortgage refinancing. Directions: Replace the numbers in the yellow boxes with your numbers. Enter interest rates as decimals (e.g., enter 5% as .05). Enter the amount you originally borrowed Enter the interest rate Enter the mortgage term (years) Enter the number of payments you've made This is your current mortgage payment This is your current loan balance Enter the amount of the new loan Enter the new interest rate Enter the new mortgage term (years) Enter the number of points the lender charges Enter any other closing costs on the new loan This is your new payment This is the amount you will pay at closing This is the amount you will save each month This is how long it will take to recover your cash investment (months)
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Refinancing
Worksheet
ge refinancing. ur numbers.
$85,000 10.50% 30 60 $778 $82,349 $85,000 7.50% 30 0% $1,200 $594 $1,200 $183 6.6
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Life
Life Insurance Needs Worksheet
Purpose: This worksheet will help you estimate your life insurance needs. Directions: Replace the numbers in the yellow boxes with your numbers. Enter percentages as decimals (e.g., enter 7.5% as .075). Enter annual living expenses for your survivors Enter annual death benefits provided by Social Security Enter any pension death benefits Enter your spouse's net income This is your annual living expense shortfall Enter the real return on your savings This is the amount of money you need to meet your living expense shortfall Enter estimated funeral and estate costs Enter repayment of mortgage and other debts Enter the amount of your spouse's and/or children's education fund This is the total amount of money you need Enter your current life insurance coverage Enter the amount of your investments and savings This is the additional amount of life insurance coverage you need
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Page 42
Life
t
$45,000 $0 $0 $24,000 $21,000 5% $420,000 $5,000 $80,000 $0 $505,000 $200,000 $75,000 $230,000
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Disability
Disability Insurance Worksheet
Purpose: This worksheet will estimate your disability insurance need. Directions: Replace the numbers in the yellow boxes with your numbers. Enter Monthly Expenses if You Become Disabled Housing Utilities Food Other living expenses Medical and dental care Insurance and loan payments Contribution to children's college fund This is your total expenses Enter Sources of Monthly Income if You Become Disabled Social Security Other government sources Group disability payments Workers' compensation Spouse's take-home income Other sources of income This is your total current income sources This is your monthly disability insurance needs $1,000 $0 $0 $0 $2,250 $0 $3,250 ($575) $800 $225 $400 $700 $200 $350 $0 $2,675
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Investment Return
Investment Returns Worksheet
Purpose: This worksheet calculates the one year total return from an investment such as stocks, bonds,
and mutual funds. It also calculates the average annual return from investments for three-, five-, and tenholding periods. Directions: Replace the numbers in the yellow boxes with your numbers. Enter returns as decimals (e.g., enter 10% as .10). One-Year Holding Period Return Enter the price at the beginning of the year Enter the amount of income received during the year Enter the price at the end of the year This is the one-year total return This is the amount of the return from income This is the amount of the return from price changes $35.00 $1.00 $38.00 11.43% 2.86% 8.57%
Three-Year Holding Period Enter year 1 total return Enter year 2 total return Enter year 3 total return Average annual return Five-Year Holding Period Enter year 1 total return Enter year 2 total return Enter year 3 total return Enter year 4 total return Enter year 5 total return Average annual return Ten-Year Holding Period Enter year 1 total return Enter year 2 total return Enter year 3 total return 5.00% 5.25% 3.00% 5.00% 6.50% -5.00% 20.00% 25.00% 9.77% 10.00% 1.30% 37.50% 15.28%
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Investment Return
Enter year 4 total return Enter year 5 total return Enter year 6 total return Enter year 7 total return Enter year 8 total return Enter year 9 total return Enter year 10 total return Average annual return
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44.00% 30.00% 15.00% 18.00% -10.00% 25.00% 25.00% 15.06%
Page 46
Investment Return
ent such as stocks, bonds,
nts for three-, five-, and ten-year
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Bond Price
Bond Worksheet
Purpose: This worksheet calculates the price of a bond. Directions: Replace the numbers in the yellow boxes with your numbers. Enter interest rates as decimals (e.g., enter 5% as .05). Enter the bond's par value Enter the number of years to maturity Enter the bond's coupon interest rate Enter the bond's yield to maturity The current price of the bond is $1,000 10 8.0% 7.0% $1,070.24
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Yield to Maturity
Yield to Maturity Worksheet
Purpose: This worksheet computes the yield to maturity on a bond. Directions: Replace the numbers in the yellow boxes with your numbers. Enter the bond's price Enter the bond's par value Enter the number of years to maturity Enter annual amount of interest the bond pays The bond's yield to maturity is $1,200 $1,000 10 $80 5.36%
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College Savings
College Savings Worksheet
Purpose: This worksheet calculates the amount you need to save each year in order to pay future college bills. Directions: Replace the numbers in the yellow boxes with your numbers. Enter percentages as decimals (e.g., enter 5% as .05). Enter age of child Enter current cost of four years of college Enter the expected annual rate of increase in college costs This is the expected future cost of college Enter the expected return on investments Enter the current balance of college savings This is the future value of existing college savings This is the total amount you still need to save This is the additional amount you need to save each year 3 $32,000 5% $66,526 7% $10,000 $27,590 $38,935 $1,549
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Retirement 1
Retirement 1 Worksheet
Purpose: This worksheet computes how much you need to be saving in order to meet your retirement income goals. Directions: Replace the numbers in the yellow boxes with your numbers. Enter interest rates as decimals (e.g., enter 5% as .05). Enter your current age Enter your expected retirement age Enter the number of years you would like your retirement savings to last Enter your desired annual after-tax retirement income (in today's dollars) Enter your estimated average tax rate Enter your estimated annual benefits from Social Security Enter your estimated annual pension benefits This is the amount your savings must provide each year (after taxes) This is the amount your savings must provide each year (before taxes) Enter the expected real return on savings after retirement This is how much you need to have saved by the time you retire Enter the expected real return on savings between now and retirement Enter the current value of your retirement savings This is how much your current savings will be worth when you retire This is how much you need to save each year between now and retirement Enter the amount you are currently saving each year for retirement This is the additional amount you need to save each year
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Retirement 1
t
g in order to meet your retirement
35 65 25 $40,000 25% $0 $0 $40,000 $53,333 4.00% $833,178 7.00% $25,000 $190,306 $6,806 $6,500 $306
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Retirement 2
Retirement 2 Worksheet
your current savings and expected future savings plans. It also calculates how much you can withdraw from your retirement savings each year after you retire. Directions: Replace the numbers in the yellow boxes with your numbers. Enter interest rates as decimals (e.g., enter 5% as .05). Enter your current age Enter your expected retirement age Enter the real return on your savings between now and retirement Enter the current balance in your retirement account Enter the amount you are currently saving each year This is how much your nest egg will be worth when you retire (in today's dollars) Enter the real return on your savings after retirement Enter the number of years you want your retirement savings to last This is the amount you can withdraw each year (in today's dollars)
Purpose: This worksheet calculates how much your retirement savings will be worth when you retire give
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Retirement 2
e worth when you retire given
w much you can withdraw
32 67 6.00% $35,000 $7,000 $1,049,056 2.50% 25 $56,939
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Estate Tax
Estate Tax Worksheet
Purpose: Directions: Replace the numbers in the yellow boxes with your numbers. Enter market value of estate assets Enter any unpaid liabilities Enter funeral costs and cost of settling estate Enter bequests to spouse and not-for-profit organizations Net value of estate Federal estate tax due (2005 rates) Tax Calculation Amount between $0 and $1,500,000 Amount between $1,500,000 and $2,000,000 Amount above $2,000,000 Amount $1,500,000 $500,000 $440,000 Rate N/A 45% 47% (Unified Credit) Tax due $3,000,000 $50,000 $10,000 $500,000 $2,440,000 $431,800
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Estate Tax
Tax $555,800 $225,000 $206,800 $987,600 ($555,800) $431,800
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