Financial and Actuarial Mathematics Term Project

Jackie Powell and Thomas Allen

April 23, 2015

Dedicated to...

Dr. Jungmin Choi

East Carolina University

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About the Authors

Thomas Allen and Jackie Powell are currently both Masters Degree Students in pursuit oftheir M.A. in Mathematical Statistics at East Carolina University. c©2015

Thomas Allen B.S. Construction Management ECU 2012Jackie Powell M.S. Economics, B.S. Quantitative Economics ECU 2014

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Contents

1 Introduction 11.1 Salary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 Investment and Annuities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.3 Budget Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.4 Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.5 Auto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2 Fixed Expenses 32.1 Year 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2 Year 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.3 Year 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.4 Year 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.5 Year 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.6 Year 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.7 Year 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.8 Year 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.9 Year 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.10 Year 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3 Variable Expenses 103.1 Year 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103.2 Year 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.3 Year 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113.4 Year 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.5 Year 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123.6 Year 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133.7 Year 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133.8 Year 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143.9 Year 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143.10 Year 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

4 Summary 16

A 10 Year Fiscal Review 17

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Chapter 1

Introduction

1.1 Salary

As up and coming Actuaries we researched the base range of pay for a Property and CasualtyActuary1 and we wish to come into the profession with 2 exams (Exam P and Exam FM)completed. We approximated our starting annual salaries to be of a gross of $63,000. Foreach successive year, we plan to pass an additional test which would result in an approximateincrease in salary of $6,000 yearly. By year 10 we estimated our salaries to gross $117,000annually after 10 years of experience and completion of all Actuarial examinations. Weaccounted for all federal and state taxes to deduct from each paycheck and budgeted basedon our monthly net salary.2

1.2 Investment and Annuities

We both agreed upon making an investment in the form of an annuity immediate. One thatis a monthly mortgage annuity with an annual effective interest rate of 5% for 5 years andhaving payments of $294.93. This annuity will have a yield of approximately $20,000.00 atthe end of the annuity.

Throughout the span of the 10 year budget we allocated a portion of our disposableincomes into an IRA account and a separate Stock Portfolio. This was done with the intentof accruing capital for retirement or future unknown expenses.

1.3 Budget Allocation

We agreed upon the created budget as a team. We first implemented a budget that wouldreflect a new professional whose main goal was to set himself up financially and repay hisscholastic debts. This period of adjustment and repayment would last for approximately 5years and then we would start accruing more mature goals such as a mortgage and children.

1Found using the website http://www.ezrapenland.com/salary/ recently updated in October of 2014.2Estimations were done via North Carolina taxes using http://www.paycheckcity.com/calculator/salary/

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These goals are represented in the budget by mortgage annuities as well as fixed mortgagepayments.

1.4 Housing

Housing is based on two components in our project. The beginning half is based on rentingan apartment in the Charlotte, NC area. With a fixed expense of $600 excluding utilities,which we accounted for under variable expenses. The second half is our transition to home-ownership while still in the Charlotte, NC area. The Home purchase is based under a 30year fixed mortgage at 3.82% annual.3

1.5 Auto

Although we have different taste in vehicles for our first auto purchase, our estimated costsof $30,000 for a vehicle and monthly insurance rates are identical. GEICO would be ourinsurance provider due to their superior service.

3This rate is based on the National average interest rate from http://www.bankrate.com/

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Chapter 2

Fixed Expenses

2.1 Year 1

RentRent is fixed at $600 monthly between two roommates in the Charlotte, NC area.

Car and InsuranceThe first 5 months of our employment does not include the purchase of a new car but stillincludes the insurance costs of our current vehicles. A portion of our money saved duringthe first 5 months will go to a down-payment for a new car on the 6th month. Our newmonthly fixed cost of the new vehicle including insurance will be $431.12.

IRA account and Stock PortfolioWe both decided that it would be in our best interest to not invest any of our income intoeither stock or an IRA account due to our student loan debt.

Mortgage AnnuityWith the intentions of buying a house in 5 years, we created an annuity to raise $20,000.Therefore we created level payments of $294.93 per month until purchase.

Cell Phone PlanBased on current rates and data plans, we plan to spend $80 per month to have a cell phone.We do not intend to have a land-line phone plan.

Home Internet and CableBased on current rates we expect to pay $40 per month for cable and internet.

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2.2 Year 2

RentRent is fixed at $600 monthly between two roommates in the Charlotte, NC area.

Car and InsuranceOur monthly fixed cost of the new vehicle including insurance will be $431.12.

IRA account and Stock PortfolioWith an increased salary and decreased loan status we started to allocate $100 dollars permonth to an IRA account for our approaching retirement.

Mortgage AnnuityLevel payments of $294.93 per month until purchase.

Cell Phone PlanBased on current rates and data plans, we plan to spend $80 per month to have a cell phone.We do not intend to have a land-line phone plan.

Home Internet and CableBased on current rates we expect to pay $40 per month for cable and internet.

2.3 Year 3

RentRent is fixed at $600 monthly between two roommates in the Charlotte, NC area.

Car and InsuranceOur monthly fixed cost of the new vehicle including insurance will be $431.12.

IRA account and Stock PortfolioWith an increased salary and decreased loan status we started to allocate $100 per monthto an IRA account for our approaching retirement. Within this year we decided to use aportion of our salary to invest $200 per month in a diversified stock portfolio.

Mortgage AnnuityLevel payments of $294.93 per month until purchase.

Cell Phone PlanBased on current rates and data plans, we plan to spend $80 per month to have a cell phone.We do not intend to have a land-line phone plan.

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Home Internet and CableBased on current rates we expect to pay $40 per month for cable and internet.

2.4 Year 4

RentRent is fixed at $600 monthly between two roommates in the Charlotte, NC area.

Car and InsuranceOur monthly fixed cost of the new vehicle including insurance will be $431.12.

IRA account and Stock PortfolioWith an increased salary and decreased loan status we started to allocate $100 per month toan IRA account for our approaching retirement.Within this year we decided to use a portionof our salary to invest $200 per month in a diversified stock portfolio.

Mortgage AnnuityLevel payments of $294.93 per month until purchase.

Cell Phone PlanBased on current rates and data plans, we plan to spend $80 per month to have a cell phone.We do not intend to have a land-line phone plan.

Home Internet and CableBased on current rates we expect to pay $40 per month for cable and internet.

2.5 Year 5

RentRent is fixed at $600 monthly between two roommates in the Charlotte, NC area.

Car and InsuranceOur monthly fixed cost of the new vehicle including insurance will be $431.12.

IRA account and Stock PortfolioWith an increased salary and decreased loan status we started to allocate $500 per monthto an IRA account for our approaching retirement. With our increased salaries we felt itwould be wise to invest more of our disposable income into our stock portfolios raising it tobe $500 per month as well as increase the amount of deposits into our IRA accounts.

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Mortgage AnnuityLevel payments of $294.93 per month until purchase.

Cell Phone PlanBased on current rates and data plans, we plan to spend $80 per month to have a cell phone.We do not intend to have a land-line phone plan.

Home Internet and CableBased on current rates we expect to pay $40 per month for cable and internet.

2.6 Year 6

MortgageDuring the first 5 years we had an annuity allocated solely to the purchase of a home with amortgage and this year is the year we decide to use it. The accumulated value of the annuityis now at $20,000 which we used as a 10% down-payment along with $3,000 from our savingsto purchase a $230,000 home in the Charlotte area. The mortgage would be a 30 year fixedmortgage at 3.82% annual effective. This along with home insurance included would haveus paying $969.25 per month.

$230,000 home for sale in the Charlotte area1

Car and InsuranceOur monthly fixed cost of the new vehicle including insurance will be $431.12 for the first 5months of year 6. With the completed transaction of purchasing the new vehicle the fixedexpense of car insurance is left.

IRA account and Stock PortfolioWith an increased salary and decreased loan status we started to allocate $600 per month toan IRA account for our approaching retirement due to increased salaries. We felt it wouldbe wise to invest more of our disposable income into our stock portfolios raising it to be $600per month.

1Zillow.com Home ID number = 24043

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Cell Phone PlanBased on current rates and data plans, we plan to spend $80 per month to have a cell phone.We do not intend to have a land-line phone plan.

Home Internet and CableBased on current rates we expect to pay $40 per month for cable and internet.

2.7 Year 7

MortgageFixed mortgage paying $969.25 per month.

Car InsuranceWith the new car being now completely paid off, the only cost is the insurance payment of$54.93 monthly.

IRA account and Stock PortfolioWith an increased salary and decreased loan status we started to allocate $700 per monthto an IRA account for our approaching retirement. We continue to invest $700 per monthinto our stock portfolios.

Cell Phone PlanBased on current rates and data plans, we plan to spend $80 per month to have a cell phone.We do not intend to have a land-line phone plan.

Home Internet and CableBased on current rates we expect to pay $40 per month for cable and internet.

2.8 Year 8

MortgageFixed mortgage paying $969.25 per month.

Car InsuranceWith the new car being now completely paid off, the only cost is the insurance payment of$54.93 monthly.

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IRA account and Stock PortfolioWith an increased salary and decreased loan status we started to allocate $800 per monthto an IRA account for our approaching retirement. We continue to invest $700 per monthinto our stock portfolios.

Cell Phone PlanBased on current rates and data plans, we plan to spend $80 per month to have a cell phone.We do not intend to have a land-line phone plan.

Home Internet and CableBased on current rates we expect to pay $40 per month for cable and internet.

2.9 Year 9

MortgageFixed mortgage paying $969.25 per month.

Car InsuranceWith the new car being now completely paid off, the only cost is the insurance payment of$54.93 monthly.

IRA account and Stock PortfolioWith an increased salary and decreased loan status we started to allocate $900 per monthto an IRA account for our approaching retirement. We continue to invest $700 per monthinto our stock portfolios.

Cell Phone PlanBased on current rates and data plans, we plan to spend $80 per month to have a cell phone.We do not intend to have a land-line phone plan.

Home Internet and CableBased on current rates we expect to pay $40 per month for cable and internet.

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2.10 Year 10

MortgageFixed mortgage paying $969.25 per month.

Car InsuranceWith the new car being now completely paid off, the only cost is the insurance payment of$54.93 monthly.

IRA account and Stock PortfolioWith an increased salary and decreased loan status we started to allocate $1000 per monthto an IRA account for our approaching retirement. We continue to invest $700 per monthinto our stock portfolios.

Cell Phone PlanBased on current rates and data plans, we plan to spend $80 per month to have a cell phone.We do not intend to have a land-line phone plan.

Home Internet and CableBased on current rates we expect to pay $40 per month for cable and internet.

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Chapter 3

Variable Expenses

3.1 Year 1

10

3.2 Year 2

3.3 Year 3

11

3.4 Year 4

3.5 Year 5

12

3.6 Year 6

3.7 Year 7

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3.8 Year 8

3.9 Year 9

14

3.10 Year 10

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Chapter 4

Summary

Throughout the duration of this project we have learned how to create and apply annuitiesthat can prove to be beneficial to our future endeavors and financial stability. Aside frombecoming knowledgeable on annuities, we also have learned how to plan and budget ourselvesin a far more responsible manner in matters of loans such as car and mortgage. In furtherdetail we learned how to lower the cost of a car using financial and actuarial mathematicswith annuities being used as down payments and how using mathematics we can betterbudget and plan our purchases. Also, with purchasing a house we learned about closingcosts and insurance and how the down payment can play a significant part in lowering ourmortgage payments. This helps relieve some of the financial burden that mortgage paymentsand a car loan can impose on someone who is not as well versed in mathematics as we arenow. In addition to learning how to use previously stated mathematics to become financiallystable we learned how to account for variable expenses throughout the duration of a yearsuch as fluctuating utility bills and months that innately employ one to spend more than thecompliments of those months i.e., summer and holiday months. Not only have we learnedhow to budget and plan using financial and actuarial mathematics to create a better life forourselves and future, we learned more about what we want later in life and personal goalsthat we intend to achieve. We both have come to enjoy actuarial mathematics and plan tobuild a future for ourselves by continuing our education in this field.

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Appendix A

10 Year Fiscal Review

Year 1

Table A.1: Year 1 Fiscal ReviewJAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

ANNUAL INCOME of $63,000INCOME ITEMSFull-time work $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00Part-time work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00GROSS INCOME $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00 $5,250.00

DEDUCTIONSFederal Income Tax $914.00 $914.00 $914.00 $914.00 $914.00 $914.00 $914.00 $914.00 $914.00 $914.00 $914.00 $914.00Social Security $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00Medicare $76.13 $76.13 $76.13 $76.13 $76.13 $76.13 $76.13 $76.13 $76.13 $76.13 $76.13 $76.13State Income Tax $266.00 $266.00 $266.00 $266.00 $266.00 $266.00 $266.00 $266.00 $266.00 $266.00 $266.00 $266.00TOTAL DEDUCTIONS $1,581.13 $1,581.13 $1,581.13 $1,581.13 $1,581.13 $1,581.13 $1,581.13 $1,581.13 $1,581.13 $1,581.13 $1,581.13 $1,581.13

NET INCOME $3,668.87 $3,668.87 $3,668.87 $3,668.87 $3,668.87 $3,668.87 $3,668.87 $3,668.87 $3,668.87 $3,668.87 $3,668.87 $3,668.87

FIXED EXPENSE ITEMSRent $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00Car and Insurance $54.93 $54.93 $54.93 $54.93 $54.93 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12IRA Account $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Mortgage Annuity $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93Stock Portfolio $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Cell phone service $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00Suddenlink(internet,cable) $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00FIXED EXPENSES $1,069.86 $1,069.86 $1,069.86 $1,069.86 $1,069.86 $1,446.05 $1,446.05 $1,446.05 $1,446.05 $1,446.05 $1,446.05 $1,446.05

VARIABLE EXPENSE ITEMSGroceries/personal items $400.00 $325.00 $350.00 $360.00 $325.00 $380.00 $400.00 $330.00 $360.00 $410.00 $450.00 $500.00Student Loans $500.00 $500.00 $600.00 $600.00 $650.00 $650.00 $700.00 $700.00 $750.00 $750.00 $800.00 $800.00Utilities (Electricity,Water) $110.00 $120.00 $110.00 $90.00 $65.00 $75.00 $80.00 $60.00 $60.00 $75.00 $95.00 $105.00Eating out $80.00 $70.00 $85.00 $70.00 $90.00 $120.00 $140.00 $130.00 $100.00 $90.00 $80.00 $75.00Gasoline $60.00 $65.00 $63.00 $64.00 $67.00 $80.00 $100.00 $85.00 $82.00 $70.00 $90.00 $100.00Entertainment $40.00 $41.00 $40.00 $50.00 $60.00 $65.00 $100.00 $50.00 $60.00 $50.00 $40.00 $50.00VARIABLE EXPENSES $1,190.00 $1,121.00 $1,248.00 $1,234.00 $1,257.00 $1,370.00 $1,520.00 $1,355.00 $1,412.00 $1,445.00 $1,555.00 $1,630.00

TOTAL EXPENSES $2,259.86 $2,190.86 $2,317.86 $2,303.86 $2,326.86 $2,816.05 $2,966.05 $2,801.05 $2,858.05 $2,891.05 $3,001.05 $3,076.05

SURPLUS $1,409.01 $1,478.01 $1,351.01 $1,365.01 $1,342.01 $852.82 $702.82 $867.82 $810.82 $777.82 $667.82 $592.82

EOY SURPLUS $6,614.76

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Year 2

Table A.2: Year 2 Fiscal ReviewJAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

ANNUAL INCOME of $69,000INCOME ITEMSFull-time work $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00Part-time work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00GROSS INCOME $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00 $5,750.00

DEDUCTIONSFederal Income Tax $1,001.05 $1,001.05 $1,001.05 $1,001.05 $1,001.05 $1,001.05 $1,001.05 $1,001.05 $1,001.05 $1,001.05 $1,001.05 $1,001.05Social Security $355.95 $355.95 $355.95 $355.95 $355.95 $355.95 $355.95 $355.95 $355.95 $355.95 $355.95 $355.95Medicare $83.38 $83.38 $83.38 $83.38 $83.38 $83.38 $83.38 $83.38 $83.38 $83.38 $83.38 $83.38State Income Tax $291.33 $291.33 $291.33 $291.33 $291.33 $291.33 $291.33 $291.33 $291.33 $291.33 $291.33 $291.33TOTAL DEDUCTIONS $1,731.71 $1,731.71 $1,731.71 $1,731.71 $1,731.71 $1,731.71 $1,731.71 $1,731.71 $1,731.71 $1,731.71 $1,731.71 $1,731.71

NET INCOME $4,018.29 $4,018.29 $4,018.29 $4,018.29 $4,018.29 $4,018.29 $4,018.29 $4,018.29 $4,018.29 $4,018.29 $4,018.29 $4,018.29

FIXED EXPENSE ITEMSRent $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00Car and Insurance $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12IRA Account $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00Mortgage Annuity $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93Stock Portfolio $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Cell phone service $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00Suddenlink(internet,cable) $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00FIXED EXPENSES $1,546.05 $1,546.05 $1,546.05 $1,546.05 $1,546.05 $1,546.05 $1,546.05 $1,546.05 $1,546.05 $1,546.05 $1,546.05 $1,546.05

VARIABLE EXPENSE ITEMSGroceries/personal items $400.00 $325.00 $350.00 $360.00 $325.00 $380.00 $400.00 $330.00 $360.00 $410.00 $450.00 $500.00Student Loans $1,000.00 $1,100.00 $1,200.00 $1,300.00 $1,200.00 $1,400.00 $1,400.00 $1,200.00 $1,300.00 $1,200.00 $1,100.00 $1,000.00Utilities (Electricity,Water) $110.00 $120.00 $110.00 $90.00 $65.00 $75.00 $80.00 $60.00 $60.00 $75.00 $95.00 $105.00Eating out $80.00 $70.00 $85.00 $70.00 $90.00 $120.00 $140.00 $130.00 $100.00 $90.00 $80.00 $75.00Gasoline $60.00 $65.00 $63.00 $64.00 $67.00 $80.00 $100.00 $85.00 $82.00 $70.00 $90.00 $100.00Entertainment $80.00 $82.00 $81.00 $100.00 $120.00 $130.00 $150.00 $100.00 $120.00 $100.00 $80.00 $75.00VARIABLE EXPENSES $1,730.00 $1,762.00 $1,889.00 $1,984.00 $1,867.00 $2,185.00 $2,270.00 $1,905.00 $2,022.00 $1,945.00 $1,895.00 $1,855.00

TOTAL EXPENSES $3,276.05 $3,308.05 $3,435.05 $3,530.05 $3,413.05 $3,731.05 $3,816.05 $3,451.05 $3,568.05 $3,491.05 $3,441.05 $3,401.05

SURPLUS $742.24 $710.24 $583.24 $488.24 $605.24 $287.24 $202.24 $567.24 $450.24 $527.24 $577.24 $617.24

EOY SURPLUS $6,357.85

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Year 3

Table A.3: Year 3 Fiscal ReviewJAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

ANNUAL INCOME of $75,000INCOME ITEMSFull-time work $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00Part-time work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00GROSS INCOME $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00 $6,250.00

DEDUCTIONSFederal Income Tax $1,088.09 $1,088.09 $1,088.09 $1,088.09 $1,088.09 $1,088.09 $1,088.09 $1,088.09 $1,088.09 $1,088.09 $1,088.09 $1,088.09Social Security $386.90 $386.90 $386.90 $386.90 $386.90 $386.90 $386.90 $386.90 $386.90 $386.90 $386.90 $386.90Medicare $90.63 $90.63 $90.63 $90.63 $90.63 $90.63 $90.63 $90.63 $90.63 $90.63 $90.63 $90.63State Income Tax $316.67 $316.67 $316.67 $316.67 $316.67 $316.67 $316.67 $316.67 $316.67 $316.67 $316.67 $316.67TOTAL DEDUCTIONS $1,882.30 $1,882.30 $1,882.30 $1,882.30 $1,882.30 $1,882.30 $1,882.30 $1,882.30 $1,882.30 $1,882.30 $1,882.30 $1,882.30

NET INCOME $4,367.70 $4,367.70 $4,367.70 $4,367.70 $4,367.70 $4,367.70 $4,367.70 $4,367.70 $4,367.70 $4,367.70 $4,367.70 $4,367.70

FIXED EXPENSE ITEMSRent $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00Car and Insurance $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12IRA Account $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00Mortgage Annuity $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93Stock Portfolio $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00Cell phone service $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00Suddenlink(internet,cable) $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00FIXED EXPENSES $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05

VARIABLE EXPENSE ITEMSGroceries/personal items $400.00 $325.00 $350.00 $360.00 $325.00 $380.00 $400.00 $330.00 $360.00 $410.00 $450.00 $500.00Student Loans $1,000.00 $1,100.00 $1,200.00 $1,300.00 $1,200.00 $1,400.00 $1,400.00 $1,200.00 $1,300.00 $1,200.00 $1,100.00 $1,000.00Utilities (Electricity,Water) $110.00 $120.00 $110.00 $90.00 $65.00 $75.00 $80.00 $60.00 $60.00 $75.00 $95.00 $105.00Eating out $80.00 $70.00 $85.00 $70.00 $90.00 $120.00 $140.00 $130.00 $100.00 $90.00 $80.00 $75.00Gasoline $60.00 $65.00 $63.00 $64.00 $67.00 $80.00 $100.00 $85.00 $82.00 $70.00 $90.00 $100.00Entertainment $80.00 $82.00 $81.00 $100.00 $120.00 $130.00 $150.00 $100.00 $120.00 $100.00 $80.00 $75.00VARIABLE EXPENSES $1,730.00 $1,762.00 $1,889.00 $1,984.00 $1,867.00 $2,185.00 $2,270.00 $1,905.00 $2,022.00 $1,945.00 $1,895.00 $1,855.00

TOTAL EXPENSES $3,476.05 $3,508.05 $3,635.05 $3,730.05 $3,613.05 $3,931.05 $4,016.05 $3,651.05 $3,768.05 $3,691.05 $3,641.05 $3,601.05

SURPLUS $891.65 $859.65 $732.65 $637.65 $754.65 $436.65 $351.65 $716.65 $599.65 $676.65 $726.65 $766.65

EOY SURPLUS $8,150.85

19

Year 4

Table A.4: Year 4 Fiscal ReviewJAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

ANNUAL INCOME of $81,000INCOME ITEMSFull-time work $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00Part-time work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00GROSS INCOME $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00 $6,750.00

DEDUCTIONSFederal Income Tax $1,175.14 $1,175.14 $1,175.14 $1,175.14 $1,175.14 $1,175.14 $1,175.14 $1,175.14 $1,175.14 $1,175.14 $1,175.14 $1,175.14Social Security $417.86 $417.86 $417.86 $417.86 $417.86 $417.86 $417.86 $417.86 $417.86 $417.86 $417.86 $417.86Medicare $97.88 $97.88 $97.88 $97.88 $97.88 $97.88 $97.88 $97.88 $97.88 $97.88 $97.88 $97.88State Income Tax $342.00 $342.00 $342.00 $342.00 $342.00 $342.00 $342.00 $342.00 $342.00 $342.00 $342.00 $342.00TOTAL DEDUCTIONS $2,032.88 $2,032.88 $2,032.88 $2,032.88 $2,032.88 $2,032.88 $2,032.88 $2,032.88 $2,032.88 $2,032.88 $2,032.88 $2,032.88

NET INCOME $4,717.12 $4,717.12 $4,717.12 $4,717.12 $4,717.12 $4,717.12 $4,717.12 $4,717.12 $4,717.12 $4,717.12 $4,717.12 $4,717.12

FIXED EXPENSE ITEMSRent $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00Car and Insurance $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12IRA Account $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00Mortgage Annuity $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93Stock Portfolio $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00Cell phone service $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00Suddenlink(internet,cable) $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00FIXED EXPENSES $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05 $1,746.05

VARIABLE EXPENSE ITEMSGroceries/personal items $400.00 $325.00 $350.00 $360.00 $325.00 $380.00 $400.00 $330.00 $360.00 $410.00 $450.00 $500.00Student Loans $1,000.00 $1,100.00 $1,200.00 $1,300.00 $1,200.00 $1,400.00 $1,000.00 $1,100.00 $1,200.00 $1,400.00 $1,300.00 $1,200.00Utilities (Electricity,Water) $110.00 $120.00 $110.00 $90.00 $65.00 $75.00 $80.00 $60.00 $60.00 $75.00 $95.00 $105.00Eating out $80.00 $70.00 $85.00 $70.00 $90.00 $120.00 $140.00 $130.00 $100.00 $90.00 $80.00 $75.00Gasoline $60.00 $65.00 $63.00 $64.00 $67.00 $80.00 $100.00 $85.00 $82.00 $70.00 $90.00 $100.00Entertainment $80.00 $82.00 $81.00 $100.00 $120.00 $130.00 $150.00 $100.00 $120.00 $100.00 $80.00 $75.00VARIABLE EXPENSES $1,730.00 $1,762.00 $1,889.00 $1,984.00 $1,867.00 $2,185.00 $1,870.00 $1,805.00 $1,922.00 $2,145.00 $2,095.00 $2,055.00

TOTAL EXPENSES $3,476.05 $3,508.05 $3,635.05 $3,730.05 $3,613.05 $3,931.05 $3,616.05 $3,551.05 $3,668.05 $3,891.05 $3,841.05 $3,801.05

SURPLUS $1,241.07 $1,209.07 $1,082.07 $987.07 $1,104.07 $786.07 $1,101.07 $1,166.07 $1,049.07 $826.07 $876.07 $916.07

EOY SURPLUS $12,343.84

20

Year 5

Table A.5: Year 5 Fiscal ReviewJAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

ANNUAL INCOME of $87,000INCOME ITEMSFull-time work $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00Part-time work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00GROSS INCOME $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00 $7,250.00

DEDUCTIONSFederal Income Tax $1,262.19 $1,262.19 $1,262.19 $1,262.19 $1,262.19 $1,262.19 $1,262.19 $1,262.19 $1,262.19 $1,262.19 $1,262.19 $1,262.19Social Security $448.81 $448.81 $448.81 $448.81 $448.81 $448.81 $448.81 $448.81 $448.81 $448.81 $448.81 $448.81Medicare $105.13 $105.13 $105.13 $105.13 $105.13 $105.13 $105.13 $105.13 $105.13 $105.13 $105.13 $105.13State Income Tax $367.33 $367.33 $367.33 $367.33 $367.33 $367.33 $367.33 $367.33 $367.33 $367.33 $367.33 $367.33TOTAL DEDUCTIONS $2,183.46 $2,183.46 $2,183.46 $2,183.46 $2,183.46 $2,183.46 $2,183.46 $2,183.46 $2,183.46 $2,183.46 $2,183.46 $2,183.46

NET INCOME $5,066.54 $5,066.54 $5,066.54 $5,066.54 $5,066.54 $5,066.54 $5,066.54 $5,066.54 $5,066.54 $5,066.54 $5,066.54 $5,066.54

FIXED EXPENSE ITEMSRent $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00Car and Insurance $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12 $431.12IRA Account $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00Mortgage Annuity $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93 $294.93Stock Portfolio $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00Cell phone service $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00Suddenlink(internet,cable) $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00FIXED EXPENSES $2,446.05 $2,446.05 $2,446.05 $2,446.05 $2,446.05 $2,446.05 $2,446.05 $2,446.05 $2,446.05 $2,446.05 $2,446.05 $2,446.05

VARIABLE EXPENSE ITEMSGroceries/personal items $400.00 $325.00 $350.00 $360.00 $325.00 $380.00 $400.00 $330.00 $360.00 $410.00 $450.00 $500.00Utilities (Electricity,Water) $110.00 $120.00 $110.00 $90.00 $65.00 $75.00 $80.00 $60.00 $60.00 $75.00 $95.00 $105.00Eating out $80.00 $70.00 $85.00 $70.00 $90.00 $120.00 $140.00 $130.00 $100.00 $90.00 $80.00 $75.00Gasoline $60.00 $65.00 $63.00 $64.00 $67.00 $80.00 $100.00 $85.00 $82.00 $70.00 $90.00 $100.00Entertainment $80.00 $82.00 $81.00 $100.00 $120.00 $130.00 $150.00 $100.00 $120.00 $100.00 $80.00 $75.00VARIABLE EXPENSES $730.00 $662.00 $689.00 $684.00 $667.00 $785.00 $870.00 $705.00 $722.00 $745.00 $795.00 $855.00

TOTAL EXPENSES $3,176.05 $3,108.05 $3,135.05 $3,130.05 $3,113.05 $3,231.05 $3,316.05 $3,151.05 $3,168.05 $3,191.05 $3,241.05 $3,301.05

SURPLUS $1,890.49 $1,958.49 $1,931.49 $1,936.49 $1,953.49 $1,835.49 $1,750.49 $1,915.49 $1,898.49 $1,875.49 $1,825.49 $1,765.49

EOY SURPLUS $22,536.84

21

Year 6

Table A.6: Year 6 Fiscal ReviewJAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

ANNUAL INCOME of $93,000INCOME ITEMSFull-time work $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00Part-time work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00GROSS INCOME $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00 $7,750.00

DEDUCTIONSFederal Income Tax $1,349.24 $1,349.24 $1,349.24 $1,349.24 $1,349.24 $1,349.24 $1,349.24 $1,349.24 $1,349.24 $1,349.24 $1,349.24 $1,349.24Social Security $479.76 $479.76 $479.76 $479.76 $479.76 $479.76 $479.76 $479.76 $479.76 $479.76 $479.76 $479.76Medicare $112.38 $112.38 $112.38 $112.38 $112.38 $112.38 $112.38 $112.38 $112.38 $112.38 $112.38 $112.38State Income Tax $392.67 $392.67 $392.67 $392.67 $392.67 $392.67 $392.67 $392.67 $392.67 $392.67 $392.67 $392.67TOTAL DEDUCTIONS $2,334.05 $2,334.05 $2,334.05 $2,334.05 $2,334.05 $2,334.05 $2,334.05 $2,334.05 $2,334.05 $2,334.05 $2,334.05 $2,334.05

NET INCOME $5,415.95 $5,415.95 $5,415.95 $5,415.95 $5,415.95 $5,415.95 $5,415.95 $5,415.95 $5,415.95 $5,415.95 $5,415.95 $5,415.95

FIXED EXPENSE ITEMSMortgage $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25Car and Insurance $431.12 $431.12 $431.12 $431.12 $431.12 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93IRA Account $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00Stock Portfolio $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00 $600.00Cell phone service $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00Suddenlink(internet,cable) $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00FIXED EXPENSES $2,720.37 $2,720.37 $2,720.37 $2,720.37 $2,720.37 $2,344.18 $2,344.18 $2,344.18 $2,344.18 $2,344.18 $2,344.18 $2,344.18

VARIABLE EXPENSE ITEMSGroceries/personal items $400.00 $325.00 $350.00 $360.00 $325.00 $380.00 $400.00 $330.00 $360.00 $410.00 $450.00 $500.00Utilities (Electricity,Water) $110.00 $120.00 $110.00 $90.00 $65.00 $75.00 $80.00 $60.00 $60.00 $75.00 $95.00 $105.00Eating out $80.00 $70.00 $85.00 $70.00 $90.00 $120.00 $140.00 $130.00 $100.00 $90.00 $80.00 $75.00Gasoline $60.00 $65.00 $63.00 $64.00 $67.00 $80.00 $100.00 $85.00 $82.00 $70.00 $90.00 $100.00Entertainment $80.00 $82.00 $81.00 $100.00 $120.00 $130.00 $150.00 $100.00 $120.00 $100.00 $80.00 $75.00VARIABLE EXPENSES $730.00 $662.00 $689.00 $684.00 $667.00 $785.00 $870.00 $705.00 $722.00 $745.00 $795.00 $855.00

TOTAL EXPENSES $3,450.37 $3,382.37 $3,409.37 $3,404.37 $3,387.37 $3,129.18 $3,214.18 $3,049.18 $3,066.18 $3,089.18 $3,139.18 $3,199.18

SURPLUS $1,965.58 $2,033.58 $2,006.58 $2,011.58 $2,028.58 $2,286.77 $2,201.77 $2,366.77 $2,349.77 $2,326.77 $2,276.77 $2,216.77

EOY SURPLUS $26,071.32

22

Year 7

Table A.7: Year 7 Fiscal ReviewJAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

ANNUAL INCOME of $99,000INCOME ITEMSFull-time work $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00Part-time work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00GROSS INCOME $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00 $8,250.00

DEDUCTIONSFederal Income Tax $1,436.28 $1,436.28 $1,436.28 $1,436.28 $1,436.28 $1,436.28 $1,436.28 $1,436.28 $1,436.28 $1,436.28 $1,436.28 $1,436.28Social Security $510.71 $510.71 $510.71 $510.71 $510.71 $510.71 $510.71 $510.71 $510.71 $510.71 $510.71 $510.71Medicare $119.63 $119.63 $119.63 $119.63 $119.63 $119.63 $119.63 $119.63 $119.63 $119.63 $119.63 $119.63State Income Tax $418.00 $418.00 $418.00 $418.00 $418.00 $418.00 $418.00 $418.00 $418.00 $418.00 $418.00 $418.00TOTAL DEDUCTIONS $2,484.63 $2,484.63 $2,484.63 $2,484.63 $2,484.63 $2,484.63 $2,484.63 $2,484.63 $2,484.63 $2,484.63 $2,484.63 $2,484.63

NET INCOME $5,765.37 $5,765.37 $5,765.37 $5,765.37 $5,765.37 $5,765.37 $5,765.37 $5,765.37 $5,765.37 $5,765.37 $5,765.37 $5,765.37

FIXED EXPENSE ITEMSMortgage $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25Car Insurance $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93IRA Account $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00Stock Portfolio $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00Cell phone service $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00Suddenlink(internet,cable) $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00FIXED EXPENSES $2,544.18 $2,544.18 $2,544.18 $2,544.18 $2,544.18 $2,544.18 $2,544.18 $2,544.18 $2,544.18 $2,544.18 $2,544.18 $2,544.18

VARIABLE EXPENSE ITEMSGroceries/personal items $400.00 $325.00 $350.00 $360.00 $325.00 $380.00 $400.00 $330.00 $360.00 $410.00 $450.00 $500.00Utilities (Electricity,Water) $110.00 $120.00 $110.00 $90.00 $65.00 $75.00 $80.00 $60.00 $60.00 $75.00 $95.00 $105.00Eating out $80.00 $70.00 $85.00 $70.00 $90.00 $120.00 $140.00 $130.00 $100.00 $90.00 $80.00 $75.00Gasoline $60.00 $65.00 $63.00 $64.00 $67.00 $80.00 $100.00 $85.00 $82.00 $70.00 $90.00 $100.00Entertainment $80.00 $82.00 $81.00 $100.00 $120.00 $130.00 $150.00 $100.00 $120.00 $100.00 $80.00 $75.00VARIABLE EXPENSES $730.00 $662.00 $689.00 $684.00 $667.00 $785.00 $870.00 $705.00 $722.00 $745.00 $795.00 $855.00

TOTAL EXPENSES $3,274.18 $3,206.18 $3,233.18 $3,228.18 $3,211.18 $3,329.18 $3,414.18 $3,249.18 $3,266.18 $3,289.18 $3,339.18 $3,399.18

SURPLUS $2,491.19 $2,559.19 $2,532.19 $2,537.19 $2,554.19 $2,436.19 $2,351.19 $2,516.19 $2,499.19 $2,476.19 $2,426.19 $2,366.19

EOY SURPLUS $29,745.27

23

Year 8

Table A.8: Year 8 Fiscal ReviewJAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

ANNUAL INCOME of $105,000INCOME ITEMSFull-time work $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00Part-time work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00GROSS INCOME $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00 $8,750.00

DEDUCTIONSFederal Income Tax $1,523.33 $1,523.33 $1,523.33 $1,523.33 $1,523.33 $1,523.33 $1,523.33 $1,523.33 $1,523.33 $1,523.33 $1,523.33 $1,523.33Social Security $541.67 $541.67 $541.67 $541.67 $541.67 $541.67 $541.67 $541.67 $541.67 $541.67 $541.67 $541.67Medicare $126.88 $126.88 $126.88 $126.88 $126.88 $126.88 $126.88 $126.88 $126.88 $126.88 $126.88 $126.88State Income Tax $443.33 $443.33 $443.33 $443.33 $443.33 $443.33 $443.33 $443.33 $443.33 $443.33 $443.33 $443.33TOTAL DEDUCTIONS $2,635.21 $2,635.21 $2,635.21 $2,635.21 $2,635.21 $2,635.21 $2,635.21 $2,635.21 $2,635.21 $2,635.21 $2,635.21 $2,635.21

NET INCOME $6,114.79 $6,114.79 $6,114.79 $6,114.79 $6,114.79 $6,114.79 $6,114.79 $6,114.79 $6,114.79 $6,114.79 $6,114.79 $6,114.79

FIXED EXPENSE ITEMSMortgage $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25Car Insurance $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93IRA Account $800.00 $800.00 $800.00 $800.00 $800.00 $800.00 $800.00 $800.00 $800.00 $800.00 $800.00 $800.00Stock Portfolio $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00Cell phone service $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00Suddenlink(internet,cable) $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00FIXED EXPENSES $2,644.18 $2,644.18 $2,644.18 $2,644.18 $2,644.18 $2,644.18 $2,644.18 $2,644.18 $2,644.18 $2,644.18 $2,644.18 $2,644.18

VARIABLE EXPENSE ITEMSGroceries/personal items $400.00 $325.00 $350.00 $360.00 $325.00 $380.00 $400.00 $330.00 $360.00 $410.00 $450.00 $500.00Utilities (Electricity,Water) $110.00 $120.00 $110.00 $90.00 $65.00 $75.00 $80.00 $60.00 $60.00 $75.00 $95.00 $105.00Eating out $80.00 $70.00 $85.00 $70.00 $90.00 $120.00 $140.00 $130.00 $100.00 $90.00 $80.00 $75.00Gasoline $60.00 $65.00 $63.00 $64.00 $67.00 $80.00 $100.00 $85.00 $82.00 $70.00 $90.00 $100.00Entertainment $80.00 $82.00 $81.00 $100.00 $120.00 $130.00 $150.00 $100.00 $120.00 $100.00 $80.00 $75.00VARIABLE EXPENSES $730.00 $662.00 $689.00 $684.00 $667.00 $785.00 $870.00 $705.00 $722.00 $745.00 $795.00 $855.00

TOTAL EXPENSES $3,374.18 $3,306.18 $3,333.18 $3,328.18 $3,311.18 $3,429.18 $3,514.18 $3,349.18 $3,366.18 $3,389.18 $3,439.18 $3,499.18

SURPLUS $2,740.61 $2,808.61 $2,781.61 $2,786.61 $2,803.61 $2,685.61 $2,600.61 $2,765.61 $2,748.61 $2,725.61 $2,675.61 $2,615.61

EOY SURPLUS $32,738.26

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Year 9

Table A.9: Year 9 Fiscal ReviewJAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

ANNUAL INCOME of $111,000INCOME ITEMSFull-time work $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00Part-time work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00GROSS INCOME $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00 $9,250.00

DEDUCTIONSFederal Income Tax $1,610.38 $1,610.38 $1,610.38 $1,610.38 $1,610.38 $1,610.38 $1,610.38 $1,610.38 $1,610.38 $1,610.38 $1,610.38 $1,610.38Social Security $572.62 $572.62 $572.62 $572.62 $572.62 $572.62 $572.62 $572.62 $572.62 $572.62 $572.62 $572.62Medicare $134.13 $134.13 $134.13 $134.13 $134.13 $134.13 $134.13 $134.13 $134.13 $134.13 $134.13 $134.13State Income Tax $468.67 $468.67 $468.67 $468.67 $468.67 $468.67 $468.67 $468.67 $468.67 $468.67 $468.67 $468.67TOTAL DEDUCTIONS $2,785.80 $2,785.80 $2,785.80 $2,785.80 $2,785.80 $2,785.80 $2,785.80 $2,785.80 $2,785.80 $2,785.80 $2,785.80 $2,785.80

NET INCOME $6,464.20 $6,464.20 $6,464.20 $6,464.20 $6,464.20 $6,464.20 $6,464.20 $6,464.20 $6,464.20 $6,464.20 $6,464.20 $6,464.20

FIXED EXPENSE ITEMSMortgage $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25Car Insurance $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93IRA Account $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00 $900.00Stock Portfolio $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00Cell phone service $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00Suddenlink(internet,cable) $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00FIXED EXPENSES $2,744.18 $2,744.18 $2,744.18 $2,744.18 $2,744.18 $2,744.18 $2,744.18 $2,744.18 $2,744.18 $2,744.18 $2,744.18 $2,744.18

VARIABLE EXPENSE ITEMSGroceries/personal items $400.00 $325.00 $350.00 $360.00 $325.00 $380.00 $400.00 $330.00 $360.00 $410.00 $450.00 $500.00Utilities (Electricity,Water) $110.00 $120.00 $110.00 $90.00 $65.00 $75.00 $80.00 $60.00 $60.00 $75.00 $95.00 $105.00Eating out $80.00 $70.00 $85.00 $70.00 $90.00 $120.00 $140.00 $130.00 $100.00 $90.00 $80.00 $75.00Gasoline $60.00 $65.00 $63.00 $64.00 $67.00 $80.00 $100.00 $85.00 $82.00 $70.00 $90.00 $100.00Entertainment $80.00 $82.00 $81.00 $100.00 $120.00 $130.00 $150.00 $100.00 $120.00 $100.00 $80.00 $75.00VARIABLE EXPENSES $730.00 $662.00 $689.00 $684.00 $667.00 $785.00 $870.00 $705.00 $722.00 $745.00 $795.00 $855.00

TOTAL EXPENSES $3,474.18 $3,406.18 $3,433.18 $3,428.18 $3,411.18 $3,529.18 $3,614.18 $3,449.18 $3,466.18 $3,489.18 $3,539.18 $3,599.18

SURPLUS $2,990.02 $3,058.02 $3,031.02 $3,036.02 $3,053.02 $2,935.02 $2,850.02 $3,015.02 $2,998.02 $2,975.02 $2,925.02 $2,865.02

EOY SURPLUS $35,731.26

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Year 10

Table A.10: Year 10 Fiscal ReviewJAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC

ANNUAL INCOME of $117,000INCOME ITEMSFull-time work $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00Part-time work $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00GROSS INCOME $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00 $9,750.00

DEDUCTIONSFederal Income Tax $1,697.43 $1,697.43 $1,697.43 $1,697.43 $1,697.43 $1,697.43 $1,697.43 $1,697.43 $1,697.43 $1,697.43 $1,697.43 $1,697.43Social Security $603.57 $603.57 $603.57 $603.57 $603.57 $603.57 $603.57 $603.57 $603.57 $603.57 $603.57 $603.57Medicare $141.38 $141.38 $141.38 $141.38 $141.38 $141.38 $141.38 $141.38 $141.38 $141.38 $141.38 $141.38State Income Tax $494.00 $494.00 $494.00 $494.00 $494.00 $494.00 $494.00 $494.00 $494.00 $494.00 $494.00 $494.00TOTAL DEDUCTIONS $2,936.38 $2,936.38 $2,936.38 $2,936.38 $2,936.38 $2,936.38 $2,936.38 $2,936.38 $2,936.38 $2,936.38 $2,936.38 $2,936.38

NET INCOME $6,813.62 $6,813.62 $6,813.62 $6,813.62 $6,813.62 $6,813.62 $6,813.62 $6,813.62 $6,813.62 $6,813.62 $6,813.62 $6,813.62

FIXED EXPENSE ITEMSMortgage $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25 $969.25Car Insurance $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93 $54.93IRA Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00Stock Portfolio $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00 $700.00Cell phone service $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00 $80.00Suddenlink(internet,cable) $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00FIXED EXPENSES $2,844.18 $2,844.18 $2,844.18 $2,844.18 $2,844.18 $2,844.18 $2,844.18 $2,844.18 $2,844.18 $2,844.18 $2,844.18 $2,844.18

VARIABLE EXPENSE ITEMSGroceries/personal items $400.00 $325.00 $350.00 $360.00 $325.00 $380.00 $400.00 $330.00 $360.00 $410.00 $450.00 $500.00Utilities (Electricity,Water) $110.00 $120.00 $110.00 $90.00 $65.00 $75.00 $80.00 $60.00 $60.00 $75.00 $95.00 $105.00Eating out $80.00 $70.00 $85.00 $70.00 $90.00 $120.00 $140.00 $130.00 $100.00 $90.00 $80.00 $75.00Gasoline $60.00 $65.00 $63.00 $64.00 $67.00 $80.00 $100.00 $85.00 $82.00 $70.00 $90.00 $100.00Entertainment $80.00 $82.00 $81.00 $100.00 $120.00 $130.00 $150.00 $100.00 $120.00 $100.00 $80.00 $75.00VARIABLE EXPENSES $730.00 $662.00 $689.00 $684.00 $667.00 $785.00 $870.00 $705.00 $722.00 $745.00 $795.00 $855.00

TOTAL EXPENSES $3,574.18 $3,506.18 $3,533.18 $3,528.18 $3,511.18 $3,629.18 $3,714.18 $3,549.18 $3,566.18 $3,589.18 $3,639.18 $3,699.18

SURPLUS $3,239.44 $3,307.44 $3,280.44 $3,285.44 $3,302.44 $3,184.44 $3,099.44 $3,264.44 $3,247.44 $3,224.44 $3,174.44 $3,114.44

EOY SURPLUS $38,724.26

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