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EXERCISE 2: CONSUMER MATHEMATICS
EXERCISE 2: CONSUMER MATHEMATICS

Learning Outcomes
After completing this exercise, you will be able to:
• conduct research on what your approximate starting salary will be once you have

graduated
• plan a monthly budget based on your starting salary which will include basic

necessities such as rent, food, mortgage, and electricity
• define and describe the applications of fundamental mathematical concepts from

consumer mathematics
• develop solutions to problems observed in personal experience based on

fundamental mathematical ideas and principles
• operate applicable technological tools to effectively analyze and visualize data.
Overview
The purpose of this exercise is to begin to think about your monthly income and
expenses after graduation. You will determine your monthly pay and take into account
any possible expenses. You are to turn in all mathematical work. Use as many different
sources as possible to make your results as realistic as possible and cite all of your
sources.

Procedure
1 Determine the average starting salary for your desired position after graduation by

either using the Internet or asking those working in the field (you can likely ask your
major professor). You must cite your source using APA Style (asking someone is
also a source). Then, calculate your monthly pay with the appropriate taxes taken
out. Use the following table to determine the percentage of tax taken from your
salary.

2 List all your monthly expenses. Again, cite your sources.

3 Use Zillow or another realtor site to find a place to live in your desired city. Add the

cost of rent to your monthly expenses. Again, cite your source.

4 Then, create an Excel spreadsheet of your monthly budget detailing each month’s

income and expenses. Make sure to budget for rent, food, gas/public
transportation, cell phone, electricity, water, student loan payments, etc.Remember
to also budget savings and special expenses like gifts and vacation. Your expenses
should also be less than your income.

5 Use Zillow or another realtor site to choose a future home (house, condo,

townhouse, etc.), land, or office space in your desired city. Calculate how much
you need to save each month for your down payment and for how long you need
to save for this down payment. A typical down payment is 20%. Incorporate this
calculated savings amount into your budget. Look up the current mortgage interest
rates. Do the calculations for the monthly payments and total home cost for a 15-
year fixed and 30-year fixed rate. Then, identify which home loan you will choose.
Again, cite your source.

https://www.zillow.com/

Sheet1

Breakdown

Taxes

7.65%

0.00%

Down Payment 20% $66,850

RATE

APR

MO. PAYMENT

Monthly Expenses 15 Year Fixed

$1,855

Food $500

Gas $300

Utilities $200

Health Insurance (estimated) $440

Spending $200

Cell Phone $80