To turn in assignment either hand to me or slide under my office door. Also place excel spread sheet in drop box and word doc in drop box.
Research your future earning potential
Need to have the following components:
Analysis starts at the end beginning of next year – 2015
Consider that you have initially invested $25K for your education
Also assume that you have a $20k loan and interest rate on the loan is 6% (fixed APR compounded yearly). The student loan will be paid back over 10 years
4. Research what a likely income is for your career choice. Give a title and a description for your career choice. Document and show how you obtained the salary number. If using the web as source be sure to use more than one site. Research to include web links if appropriate.
BE SURE TO USE YOUR OWN WORDS FOR A JOB DESCRIPTION. DO NOT CUT AND PASTE JOB DESCRIPTION FROM A WEB SITE. ALSO REVIEW MY COMMENTS ON YOUR SALARY IN LINK BELOW.
5. After your first year income assume that your income will increase by 2% each year.
6. General living expenses and taxes will start at 60% of your income. Expenses will also increase at 2% per year.
7. Find the present worth of your plan, starting in 2015 and running for 35 years. For your NPW analysis use an interest rate of 15%.
8. Find the rate of return that will make the net present worth equal to zero.
9. How many years will it take to make one million dollars if you save 10 percent of your income (you can deposit your savings @ 9% APR compounded yearly)?
Work and method explanation should be documented on engineering paper (grading for this part will be based on can I follow your logic and your work). Cash flow diagram needs to be submitted on separate sheet of engineering paper (neatness does count). Calculations can and should be done on an excel spreadsheet (if using excel be sure to submit this as well. Final numbers including items 4, 7, 8 and 9 should be submitted in a professionally written letter. (business format).