First College Math Test
You won’t be graded, but answer correctly and you could earn some major bonus points with Mom and Dad.

Problem 1:
Joe Student enrolls at AU in Fall of 2005. He rents an apartment with 3 of his buddies. He pays ~$425 a month in rent 12 months* each year for 5 years until he graduates (*this assumes he can’t find a sub-leaser for Summer each year).

Q: How much of his parent’s $s does Joe spend on rent over those 5 years?
A: ~$25,100 (Yep that’s 25 thousand dollars!)
Q: What do Mom and Dad get in return for this investment?
A: Joe gets his degree, Dad works nights to make the extra money needed to help Joe. Mom & Dad are -$25,100.

Problem 2:
Jane Student (no relation to Joe) enrolls at AU in Fall of 2005. She tells Mom & Dad about the exciting new student houses (yep houses not apartments) called Eagles Landing. These houses are incredible! They have 4 bedrooms and 4 baths! They have washer/dryers, microwaves and dishwashers! They come equipped with high speed Internet access! Jane’s parents purchase an Eagles Landing house at the lowest interest rates in 40 years! Their Mortgage payment is about $800 a month. Jane finds 3 friends she met at Camp War Eagle to each rent a bedroom for $425 a month.

Q: How much of her parent’s $s does Jane spend on rent over those same 5 years?
A: $1275 (3 @ $425/mo.- from roommates) of the $800* payment = $475 (for Jane) a month X 5 years = ++ $28,500 (compare that to what Joe spent) See Problem # 1 (Yikes!)
Q: What do Mom and Dad get in return for this investment?
A: Jane graduates too (YEA!). Mom and Dad save THOUSANDS of dollars that they can spend towards Jane’s NEW CAR! (YEA! YEA!). Mom and Dad sell their Home at Eagles Landing with the help of Joan Penrod Real Estate and use their equity of +/- $40,000 as a down payment on that dream condo at the beach! WOW! TOUGH TEST? Nah, it’s a NO BRAINER…

BUY A HOME AT EAGLES LANDING! Mom and Dad will thank you for it…

*Mortgage payments may vary depending on the down payment and interest rate.