• Real World Activity


    Make sure to type your name on the assignment!

    Real World Activity Info Sheet

    PART 1: WORK

    1. Type in the job you were assigned on your slip you were given at the beginning of the period.
    2. Human capital is the knowledge, skills, and experience you need for your job. Basically, how are you qualified to do the job that you do. Did you go to college, a trade school, the military, an internship, an apprenticeship?


    1. Type in the salary you were assigned on your slip you were given at the beginning of the period.
    2. The government takes a portion of your income for taxes. The amount of your salary that is taxed depends on your level of income. The following chart displays the federal income tax brackets:








    $200,001 or more

    Tax Rate









    Your Income

    Inc x .9

    Inc x .88

    Inc x .78

    Inc x .76

    Inc x .68

    Inc x .65

    Inc x .63

    Once you find your tax bracket, take your annual salary and times it by the tax rate. Look at the “Calculating Your Income” row to see how it’s done. “Inc” stands for income. For example, if you make $88,000 annually you would be in the 22% tax bracket. So you would times 88,000 by 0.78 and get $68,640 as you annual income after taxes.

    1. Divide you annual income after taxes by 12 to get your monthly income after taxes.


    1. Go to zillow.com or trulia.com to find a home to answer the Part 3 questions.
    2. To calculate your down payment, times the original home price by 0.1.
    3. All your mortgage types will be fixed-rate mortgages.
    4. The principal of your loan is the original home price minus the down payment. In other words, times the original home price by 0.9.
    5. All your interest rates will be 5.5% and all your mortgage lengths will be 30 years.
    6. Google “mortgage calculator” and scroll down until you see the calculator. Type in the principal of your loan and adjust the interest rate. Look at the numbers to fill in the questions.
    7. To calculate how much you paid in interest you will take the Total Cost of Mortgage and minus it by the Principal of Your Loan.


    1. Here are some of the bills you will fill in:


    Home By Yourself

    Home with a Roommate/Spouse

    Monthly Mortgage

    Stays the same

    You can divide by two







    Internet and Cable



    Property Tax

    Stays the same

    You can divide by two

    Private Mortgage Insurance (PMI)

    Stays the same

    You can divide by two

    Homeowners Association (HOA)

    Only applicable if a townhome

    Only applicable if a townhome

    Home Insurance







    Mortgage: You can divide by two if living with a roommate or significant other. You must pay at least half.

    Property Tax: Original price of your house x 0.01 = YPT.  Then take the YPT and divide it by 12.  (YPT stands for your yearly property tax)

    Private Mortgage Insurance: Also known as PMI, most lenders require PMI when a homebuyer makes a down payment of less than 20% of the home's purchase price. Take the original home and times it by 0.2, then divide that number by 30, and then divide that number by 12. (example: 500,000 x 0.2 = 100,000 ÷ 30 = 3,333 ÷ 12 = 278) 278 would be your monthly PMI.




    Go to truecar.com. Then either click on Shop New or Shop Used. Then choose your car type. Then type in your zip code of your new house (check Part 3). Then find the car price.


    Once you find the car price, google “car loan calculator.” Scroll down to you find the calculator. Where it says “loan amount” put the car price. Keep the 3.11 interest rate. Then use the numbers to answer the questions.




    Here are the bills for you to type in:

    • Gas: $160
    • Maintenance/Fees: $110
    • Car Insurance: $115




    Here are the bills for you to type in:

    • Cell Phone: $80
    • Food: $150
    • Personal Products: $30-$200? Just depends the person!
    • Clothes: $100
    • Entertainment: $125
    • Miscellaneous: $100
    • Savings: Your monthly salary after taxes x .05
    • 1 Kid: $1,100 > yes, the average kid in the U.S. costs over $1,000 a month!
      • Then divide by two because you’ll be splitting the costs with your significant other. ($550 per kid)
    • 1 Pet: $80 (cat or dog) > other pets are up to you
      • If you plan to split the cost of the pet with your roommate/spouse, you can divide by two.


    How to turn it in?

    Print it out and then staple. Before printing it out and turning it in, it might be a good idea to have the teacher look over it to make sure your numbers work out.