Management
You have to identify the mission statement of Starbucks Corporation and describe its impact on the operations of the firm. Please USE academic and reliable resources. The most important think is not to have any grammar mistake and to you HAVE TO USE APA FORMAT. It should be two and a half pages
and use in text citations

Paper details:FIN 361Loan amortization project
First, write out the assumptions on your group’s financial backgrounds and what you
need/want for the house.
• E.g. “We assume that we are in mid-20-year-old range, have two kids. We assume
we earn $4,000 a month. We want a house with at least 3+ bedrooms, 2+
bathrooms, big yard, etc.”
Second, go to Zillow (or any real estate website).
Choose 1 house that fits your needs/wants/price range. Write down the price of the
house is listed.
Assume you will pay 20% down payment and borrow the rest of the price from the
bank.
Assume best credit score.

• Choose one bank and call up to find the real rate on:
• 15 year fixed rate
• and 30year fixed rate
• show reference: talked with who/ which bank/ when/ and at what credit score,
what interest rate they referred
• Ask them what the monthly payment is without the tax, insurance, etc.,
respectively…(A)
• Ask them what the ball park number would be for total monthly payments
including escrow payments of tax, insurance (you would have to let them know
where the interested property is for them to “kind of” figure out the tax,
insurance) , respectively…(B)
Now using the calculator and the given interest rate
• Find the monthly payments for each 15yr and 30yr rate , respectively .. confirm
with the number that the banker gave you for monthly payments without the
escrow account
• find total interest payments that you are paying respectively and
• show what’s the difference in monthly payments, and total interest.
• Add the ball park number from above (which would be the value from (B) minus
(A)) to the monthly payment that you calculated
• Including the ball park number of taxes, insurances from above, how much does
the “actual monthly” payment go up to? Is it affordable?
• NEED TO SHOW THE STEPS IN CALCULATION
Then , (future projection)
• Assume next year, it is expected that the mortgage rates will go up to 5.5% for a
30 year fixed rate. If the currently listed housing price is the same, how much is
the monthly payments (without escrow) and the total interest you are paying for
the mortgage? How much more monthly payments would you be paying for the
same house at the same price and how much more total interest are paying?
• Including the ball park number of taxes, insurances from above (which would be
the value from (B) minus (A)), how much does the “actual monthly” payment go
up to? Is it affordable?
o You will see that this would be one of the reasons that the current housing
market is very hot.
• Secondly assume now, with the 5.5% already hiked up interest rate, it has
reduced the price of your house by 10% (due to lower demand of the house).
With this new assumption, calculate your new monthly payments and your new
total interest.
• What happened?
• Including the ball park number of taxes, insurances from above (which would be
the value from (B) minus (A)), how much does the “actual monthly” payment go
up to? Is it affordable?
DISCUSSION
• Among all these choices, what do you think is the optimal choice for you/your
group given the circumstances that you are facing? Write out your circumstances
and why you/your group chose that choice.
• Write what you learned from this project
• In the appendix, include a chart (like below) for each pmt schedule
CURRENT FUTURE
(1) (2) (3) (4)

15 year
fixed rate
30 year
fixed rate
30 year future
rate with same
house price
30 year future
rate with
reduced house
price
housing price
20% down payment
mortgage rate 5.50% 5.50%
monthly pmt (without escrow)
monthly pmt (with escrow)
total interest pmt
difference in monthly pmt N/A
using
column (2)
– (1) info
using column (3)
– (2) info
using column (4)
– (2) info
difference in total interest N/A
using
column (2)
– (1) info
using column (3)
– (2) info
using column (4)
– (2) info