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Math 1030 Group Project

Jack Stout & Sydney Stout

Spring Semester 2019 – Math 1030
Overall this project has taught us a lot about the value of purchasing a home. It has taught us

that real estate is almost always a exponential increasing investment which can yield great

returns over time. Betty was a great example of why you should purchase a home. Although the

payments were large, and the majority of the payments went to interest, she was able to

purchase small bits of the home through each montly payment which eventually payed off her


We have also seen the value of upgrading your home when you are ready to. Because of her

upgrade decision she was able to increase the starting amount of her exponential increase

which, in turn, allowed her to increase her overall wealth. If she had chosen to stay in her

original starter home that only cost $160,000 she would have not had the chance to increase

her amount that she earned on appreciation by nearly as much.

We feel as though Betty was truly thinking ahead as she was making her decisions to stay in her

home or leave it. Because she decided to leave and purchase a much nicer home with the

original cost of 300,000 she was able to increase her actual worth to well over 1 million dollars.

We were impressed with her decisions all along the way, however we do not feel as though it

was the most accurate way to show her increase in wealth. There are always unexpected costs

when purachsing a home and because of that the numbers could have worked out much


We also think that Randy didn’t necessarily do anything wrong in his decision to rent during the

whole time. He limited the amount of risk that he took on and was able to avoid having to pay

for expenses, and other issues that could arise while owning the home. Because of this, Randy
played it safely throughout the whole process, however he at the end of the day he had not

gained the amount of wealth that Betty did because of her risk.

We think it is interesting that although hit took a significant amount of time, Betty’s decision to

purchase a home at such a young age really worked out in her favor. Not many young people

are able to purchase a home because they cannot save up for the down payment, which limits a

lot of people who really want to purchase a home. Because of Betty’s sacrifice she gained a lot

of wealth over the years and in the golden years of her life she is now able to access financial

freedom and live happily. Randy should be happy as well, however it will not know the financial

freedom that Betty obtained.