Retrieved From Low Interest Personal Loans -Myassignmenthelp.com

Question: Discuss Abpout The Retrieved From Low Interest Personal Loans? Answer: Introduction My name is Harry Hunter. Am a qualified teacher who has completed a bachelors degree in teaching from Macquarie University. In addition to the bachelors degree I have gone ahead to attain a Master of teaching degree from the University of New South Wales. The above processes have equipped me with relevant skills needed to deliver quality teaching services to all the students. Currently employed as a primary school teacher in Sydney city which is in the New South Wales state. My current level is a first-year teacher which attract an annual salary of $ 67248. This translates into a gross fortnight pay of $2586.46 (SCHOOLS SALARIES AND RATES OF PAY (2017-2019), 2017). I live 3 kilometers from the school I work. To reach the school from my residential I can either use public transport which entails taxis or buses. Am a trendy person who adores fashion. On my free time I value leisure and is occasionally traveling across the state for site seeing and picnics with friends. Currently I rely primarily on public means of transport and in need of a private car. The choice of this topic was triggered by the need to gain more insight on budgeting. The use of public transport is often inconveniencing as it does not offer door to door services which I need. In addition, I travel a lot and occasionally to places that I find hard to reach using the buses. Considering that I have several expenses that need to be catered for, this topic is to help me factor in all my financial constraints. Thereafter, all come up with an economic decision that will see me ease the transport burden while at the same time managing to sustain my daily demands. How the investigation will be conducted The data that will be used on this topic will be obtained online from the websites of various relevant organizations. The websites will be both for government organizations as well as private firms. In addition, all consider the input from friends and colleagues who have models of vehicles which I may be interested in. Afterwards, all evaluate the data obtained and make a choice based on personal interest and financial constraint. Comparison of the various options Car model comparison Hyundai Accent Nissan Versa Note Has a distinctive design with a fuel-sipping engine. Has 130-hp 1.6-liter inline -four pairs with a standard perky sluggish six-speed automatic. Has a 10 year per 100000-mile powertrain warranty The car cost approximately $ 15580 Top speed is 120 mph Has a styling roomy back seat with an astronomical fuel economy. The car is weak with 1.6- liyer-fouir cylinder makes. In addition, it has a sloppy-five-speed manual. The car has a soft suspension and a grip free tires giving it a bland road behavior. The car cost approximately $ 16365 Top speed is 114mph The two models of cars were my preferred choice and from comparing their qualities Hyundai Accent offered the best qualities at an economical price. All therefore select it as the car to purchase. Moreover, I compared the rate of car insurance in 3 companies to help decide the preferable choice (Ryan, CANSTAR, 2018). Company Annual rate ($) Budget direct 1250 Ozicare Insurance 1140 Virgin Money 1250 Based on the cost of the insurance policies I selected Ozicare as my car Insurer. Project financing strategies To finance my project of purchasing a car I will need to obtain a loan from a financial institution in New South Wales. I have identified the SoFi personal loans as a favorable source of the capital. They allow borrowing of up to $ 100,000 payable in a maximum of 7 years. Their loan interest varies from 5.49% to 14.24% convertible annually. Since am compensated for my teaching job on a fortnight basis all consider the monthly payment structure.as it will be convenient for me to settle the loan amount whenever I have a surplus capital (Porter, 2018). All thereby consider taking a loan of $15580 to be paid for a period of 2 years. The interest on the loan is settled monthly while the capital is paid at the year-end. The loan term consists of interest of 6.25% which is convertible annually. Annual budgeting strategy The strategy will entail highlighting all my revenues and expenses and evaluating the surplus capital expected after venturing into the project. Calculating the tax payable Current Resident Tax Rates 2017-2018 (Exfin International Pty Ltd, 2018). $0 $18,200 Nil $18,201 $37,000 19c for each $1 over $18,200 $37,001 - $87,000 $3,572 plus 32.5c for each $1 over $37,000 $87,001 - $180,000 $19,822 plus 37c for each $1 over $87,000 $180,001 and over $54,232 plus 45c for every $1 over $180,000 My salary falls in the $37,001 - $87,000 tax bracket. So, to calculate my tax I get $3572 plus 32.5c* ($67248-$37000) = 32.5c*30248=983060c which is equivalent to $9830.6 In total my tax for the year will be $9830.6 + $3572 = $13402.6 The annual salary is $ 67248 amount payable as tax $13402.6 which leaves a net pay of $53845.4 Annual net income $ 53845.4 Expenses Home Vehicle Utilities Food Personal Others $20722 $6630 $3120 $6240 $2860 $2860 $42432 Annual savings $11413.4 Less loan capital repayment $7790 Surplus cash available $3623.4 The Budgeting Section My current expenses are mainly categorized into the home, vehicle, utilities, food, personal and others. L normally do prefer cooking at home more frequently than visiting the hotels and it is economical. Also, most of my clothes are purchased from the local shops in Sydney town as they sell at a lower cost compared to imports from Dubai. Gross Income per fortnight is $ 2586 this deduct the $ 516 payable as taxation leaves a net of $ 2070 (Australian Taxation Office, 2017). The tax per fortnight is obtained by taking the annual tax income divide by 26 (13402.6/26=516) Expenses in one month Cost ($) Total ($) Reference Home Home insurance Rent 37 760 797 (Ryan, CANSTAR, 2016) Vehicle Car insurance Gas Repairs Loan interest 44 100 70 41 255 Utilities Telephone Water Electricity Internet 30 20 25 45 120 Food Serials Hotel 150 90 240 Personal Clothing Medical 70 40 110 Others Leisure Presents 60 40 110 Total 1632 From the net income of $ 2070 if I deduct the $1632 for expenses then all be able to save $ 438 in a single fortnight. This transforms into a saving of $ 11388 per annum. Project cost The project is expected to cost $ 15580 plus the addition of (15580*0.0625*2=1947) $1947 in the form of interests. Since this amount cannot be raised from my savings per fortnight all consider borrowing and have identified the SoFi for a personal loan. The loan will be paid in a period of two years at an interest of 6.25% convertible annually. In total the project will cost $7790 of capital in the first year plus $974 as interest totaling $8764. Since the interest are paid monthly and have been budgeted in the fortnight income only the $ 7790 will be settled at the end of the year. This will leave me with surplus cash of ($ 11388 - $ 7790) =$3598 at the end of the year. Examples of mathematical processes and calculations applied during the investigation Calculation Method Working Algorithm Addition (obtaining the total cost of food expenses) Scratch 150 +90 240 First write the numbers in columns with the units such that ones are under ones and tens are under tense etc. Add the ones that is 0+0=0 write this in the ones column Then add the tens 5+9=14, write 4 in the tens column and note 1 Add the 1 to the 1 in the hundreds column 1+1=2 and write the 3 in the hundreds column Lattice 1 5 0 + 9 0 0 1 1 4 0 0 2 4 0 Subtraction (calculating the expected savings per fortnight) Scratch method 2070 -1632 438 Arrange the values in a column form with the ones in one column tens in one column etc. Solve them in the column form starting from the left. 0-2 is not possible so I obtain one from 7 in the tens column to make it 10-2 which is 8. In the tens column you have 6-3=3 In the hundreds column you have 0-6 which is not possible, so you obtain 1 from the thousands column to make it 10-6=4 In the thousands column take 1-1 to get 0 Regrouping 2070 -1632 362 t h t 0 || ,,,,,,, | . ,,,,,, ////////// . ,,, Fist I wish to take away 2 from 0 which is not possible. So, I borrow one from the tens column to make it 10. Now 10-2=8 Now I go to the tens columns I need to take away 3 from 6 which gives me 3, I then move to the hundreds column and need to remove 6 from 0 which is not possible. So, I borrow one from the thousands column to have 10-6=4 In the thousands column I have one which when I remove 1 remains with zero Multiplication (obtaining the annual savings) Standard multiplication 438 * 26 2628 876 11388 Write the number in columns such that that ones are ones, tens under tens etc Starting from the right-hand side multiply 6*8=48. Write 8 under the ones column and note 4. Now multiply 6*3=18 and add the 4 noted above 6*3=18+4=22. Write 2 under the tens column and note 2 Multiply 6*4=24 and add the 2 to give 18+2=26. Write the 23 such that 6 is under the hundreds column and 2 the thousands column. Now go to the 2 in the bottom row, multiply 2*8=16 and write the 6 under the tens column and note 1. Again, multiply the 2*3=6 and add the 1 notes above 6+1=7, write 7 under the hundreds column. Multiply the 2*4=8 write the 8 under the thousands column Now perform addition First drop 8 to the ones column. Then add 2+6=8 write 8 in the tens column Add 6+7=13 write the 03in the hundreds column and note 1 Lastly add 8+2=10 plus the one noted above to get 11 Lattice multiplication style 4 3 8 0/8 0/6 1/6 2 2/4 1/8 4/8 6 11 3 8 8 First, we set the lattice box The multiplication is 3 digits by 2, the box will be a 3*2 The next step will be to add Division (deriving the interest amount to be allocated to a fortnight income) standard 37.4 974/26 1 Ans is 37 to the nearest whole number Short division 974/26 37 26 974 78 194 182 12 Starting from the left check if 9/26 is a value greater than 1, if no check 97/26=3. 3 is the whole number obtained write it on top of 7. Then multiply 26*3=78. Subtract 97-78=19, write the 19 and drop 4 to make it 194. Now I have 194/26=7 number. Write it on top of 4 The value of the division is 37 Percentage (interest rate) Multiplication and division 974/15580*100= 6.25 Fraction (interest rate) 974/15580= 487/7790 Simplify Investigation results My research into the model of a car to purchase, the appropriate financial plan and effective budgeting to cater for this plan was a success. By visiting several car dealers and consulting the people who had a car model like the one I had interest in, I managed to gather adequate information. My informants educated me on the features and qualities to look for in a car. In addition, I managed to source for reliable car dealers who offer the best car prices on the internet. From the internet sources I also obtained information on credit institutions and was able to select a convenient source of a personal loan to assist me in funding the project. Was I to replan the project then I may shift my reliance on individual information from friends and instead focus on visiting various agents for more precise information. Difficulties encountered during the investigation and their solutions One of the major difficulty I endured during my planning was the time limit. Occasionally I had to book a meeting with company agents and consultants to source for information. Since I a dedicated school teacher I found it hard to share my work time with the planned meeting considering that the working ours tend to collide. Also, I found reliance on information from friends a bit misleading as some of the information I obtained from them ended up varying from the actual data from company agents. The difficulty was though resolved once I settled on the agency information as a budgeting basis. Lastly, prior to the investigation I had difficulties understanding the interest rates computation. This was though made clear after I obtained clarification from the financial institutions I visited. Lesson learned from the investigation From this investigation I have managed to have a grip on the art of personal budgeting. In future all have an easy time understanding my expenses hence be able to regulate unnecessary spending. Moreover, I have managed to acquire knowledge of bank loans and their interests should I need financing in future I gauze my budgeting plan will be much simpler. References Australian Taxation Office. (2017, July 1). Australian Government; Australian Taxation Office. Retrieved from Pay as you go (PAYG) withholding: https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/Fortnightly-tax-table-2017-18.pdf Exfin International Pty Ltd. (2018). exfin. Retrieved from Current Australian IncomeTax Rates - Resident and Non-Resident: https://www.exfin.com/australian-tax-rates Porter, T. (2018, January 23). Banktracker. Retrieved from The Best Low-Interest Personal Loans for 2018: https://www.mybanktracker.com/personal-loans/reviews/low-interest-personal-loans-273431 Ryan, T. ( 2018, January 11). CANSTAR. Retrieved from How Much Does Car Insurance Cost?: https://www.canstar.com.au/car-insurance/what-does-car-insurance-cost/ Ryan, T. (2016, September 16). CANSTAR. Retrieved from What is Home Contents Insurance and how much does it cost?: https://www.canstar.com.au/home-insurance/home-and-contents-insurance/a-beginners-guide-to-home-and-contents-insurance/ SCHOOLS SALARIES AND RATES OF PAY (2017-2019). (2017). Retrieved from https://www.nswtf.org.au/files/schools_-_salaries_and_rates_of_pay_2017-2019.pdf