Description
As an Ivy Tech student, you are making an investment in your education. This project will look at how that investment will pay off if you graduate and get a job in your desired field. You will be comparing your futurefinances with someone who is not a college graduate. You will be creating this project entirely in EXCEL.
1) Income Comparison: Research your expected income after you graduate. Assume you obtain whatever level of education needed to enter your desired area of employment. We recommend using the annual Median salary found at: http://www.bls.gov/oes/current/oes_in.htm#27-0000*You will need to click on your desired career in order to see the Annual Median wage. If using a different source, you must cite it.
◻ State what your desired area of employment is and what the median annual salary for that position is. Why did you choose this career? How much schooling is needed for this job?
◻ Make at least one statement comparing your expected salary with that of the median income of a minimum wage worker. Please useabsolute and relative change statements as they are an excellent way to compare values. Assume that the median annual income for a minimum wage worker is $15,080, use this value in comparison statements.
2) Housing Comparison: Assume that you and your minimum wage worker counterpart plan to spend 1/5th(20%) of your gross monthly income on house payments. Research the current fixed rate APR for mortgages and choose one that might fit your needs. Most people will use a 30 year mortgage, however, you may use a 15 year mortgage if you wish. Then use Excel to determine the largest value of a mortgagethat each of you can afford to borrow under those conditions.
◻ Your answer should contain at least one statement comparing the value of the house that a minimum wage workercan afford and that you expect to be able to afford. (Remember to use absolute and relative change here).
◻ Explain what Excel function was used for these calculations. Cite what source you used to find mortgage rates.
◻ Research housing costs in an area where you would like to live.Will your future salary allow you to afford the house you want, or should you consider other housing options? How much more or less must you spend to get the house you want? Cite what source you used to find housing costs.
3) Retirement Comparison: 401k investments are expected to earn a 4.5% annual return. Assume that 6% of your gross monthly income is to be set aside for 401k investment. Use Excel to determine the balance on such a 401k after 40 years of investment for the minimum wage worker and for your expected income.
◻ Your answer should contain at least one statement comparing the value of the 401k investment of the minimum wage workerand for your expected salary.
◻ Explain what Excel function was used for these calculations.
◻ Also use Excel to determine how many years it would take for the minimum wage worker and for your expected investment to reach $500,000.Your answer should contain at least one statement comparing the time it would take for the 401k investment of the minimum wage workerand for your expected salary to reach $500,000.
Project Checklist:
◻ Projectmustcontain some absolute and relative change statements.
◻ Explanation of career choice and the salary for this career.
◻ Comparison of your expected salary vs.a minimum wage worker.
◻ Comparison of house you could afford with expected salary vs. minimum wage worker.
◻ Explanation of how house value was determined.
◻ Reflection on the housing costs and researchedhouse values.
◻ Explanation of how the 401k value is determined.
◻ Comparison of length of time it would take to achieve $500,000 in retirement funds.
◻ Explanation of how the time to reach $500,000 is determined.
◻ An organized spreadsheet with clearly labeled values.
◻ Completed project should be submitted via Ivy Learn on time.
In addition to addressing the statements above, your project should:
◻ Contain your name, course name and project name.
◻ Be well organized and easy to follow.
◻ Be clear to by someone who is not familiar with the project.
◻ Provide support for your statements e.g. explain how values were found.
◻ Give specific values (i. e. quantify statements).
◻ Use appropriate representations (tables, color, formatting) that helps the reader understand the project.
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Explanation & Answer
Hello. Here is the file with the completed project. Please let me know if it needs revision.
1) Income Comparison
Career of choice:
Forensic Science Technician
The career I chose is Forensic Science Technician because I want to help victims recover from traumas and to
rehabilitate criminals.
The median anual salary of a Forensic Science Technician is $59,150
The minimun requirement to become an Forensic Science Technician is a Bachelor's degree in Forensic Science.
A degree in Biology, Chemistry or Natural Science can suffice as well. Having more credentials such as a
master's degree, PhD will increase the chances of getting a job in this field.
Source of median salary by career: https://www.bls.gov/oes/current/oes194092.htm
Comparing my expected salary of $116,500 to with a minumun wage worker with a median anual salary of $15,080
𝐴𝑏𝑠𝑜𝑙𝑢𝑡𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 = 𝐻𝑖𝑔ℎ 𝑣𝑎𝑙𝑢𝑒 − 𝐿𝑜𝑤 𝑣𝑎𝑙𝑢𝑒
𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝐶ℎ𝑎𝑛𝑔𝑒 =
𝐻𝑖𝑔ℎ 𝑣𝑎𝑙𝑢𝑒
− 1 × 100
𝐿𝑜𝑤 𝑣𝑎𝑙𝑢𝑒
Note: In this exercise I am calculating the relative change with respect to the high value (higher salary). It can be calculated with respect
to the low value (lower salary). In that case the low value would be in the numerator and the high value in the denominator.
Forensic Science Technician
Minimum wage job
Median anual
Absolute
salary
change
$
59,150
$
44,070
$
15,080
Relative
change
292.2%
A Forensic Science Technician is expected to earn $44,070 more per year than a minimum wage worker. This is
simply the difference between the two incomes, which is the absolute change. In relative terms, I am expected
to earn 292.2% more of the minimun wage worker's salary. In other words, my expected income is expected to
be 3.922 times of the minimun wage job salary.
aumas and to
orensic Science...