Solutions

Questions 1,2,3,4,6,8 had answers that depended on K. Those answers are given in the table below. The other answers did not depend on K. For #5, the answer is buying is cheaper by $13825.38. For #7, the answer is j12 = 15.2086%. For #9, the monthly payment is $8158.43. For #10, the award is $367274.10.

K #1 #2 #3 #4 #6 #8a #8b  
0 $ 19,656.89 $ 2,572.23 $ 8,311.09 $ 42,088.19 0 346 $ 62.76  
1 $ 19,658.36 $ 2,575.91 $ 8,318.88 $ 42,148.32 0 335 $ 559.35  
2 $ 19,659.83 $ 2,579.58 $ 8,326.66 $ 42,208.45 0 325 $ 847.12  
3 $ 19,661.29 $ 2,583.26 $ 8,334.45 $ 42,268.57 0 316 $ 819.23  
4 $ 19,662.76 $ 2,586.93 $ 8,342.23 $ 42,328.70 0 308 $ 381.40  
5 $ 19,664.23 $ 2,590.60 $ 8,350.01 $ 42,388.82 0 300 $ 500.13  
6 $ 19,665.70 $ 2,594.28 $ 8,357.80 $ 42,448.95 0 293 $ 70.30  
7 $ 19,667.17 $ 2,597.95 $ 8,365.58 $ 42,509.08 0 286 $ 95.39  
8 $ 19,668.64 $ 2,601.63 $ 8,373.36 $ 42,569.20 0 279 $ 542.96  
9 $ 19,670.10 $ 2,605.30 $ 8,381.15 $ 42,629.33 0 273 $ 294.12  
10 $ 19,671.57 $ 2,608.98 $ 8,388.93 $ 42,689.45 0 267 $ 395.81  
11 $ 19,673.04 $ 2,612.65 $ 8,396.71 $ 42,749.58 0 261 $ 826.60  
12 $ 19,674.51 $ 2,616.33 $ 8,404.50 $ 42,809.71 0 256 $ 448.70  
13 $ 19,675.98 $ 2,620.00 $ 8,412.28 $ 42,869.83 0 251 $ 345.42  
14 $ 19,677.45 $ 2,623.68 $ 8,420.07 $ 42,929.96 0 246 $ 502.94  
15 $ 19,678.91 $ 2,627.35 $ 8,427.85 $ 42,990.08 0 241 $ 908.01  
16 $ 19,680.38 $ 2,631.03 $ 8,435.63 $ 43,050.21 0 237 $ 390.13  
17 $ 19,681.85 $ 2,634.70 $ 8,443.42 $ 43,110.34 0 233 $ 77.98  
18 $ 19,683.32 $ 2,638.37 $ 8,451.20 $ 43,170.46 0 228 $ 1,143.63  
19 $ 19,684.79 $ 2,642.05 $ 8,458.98 $ 43,230.59 0 225 $ 38.53  
20 $ 19,686.26 $ 2,645.72 $ 8,466.77 $ 43,290.71 0 221 $ 295.67  
21 $ 19,687.72 $ 2,649.40 $ 8,474.55 $ 43,350.84 0 217 $ 727.45  
22 $ 19,689.19 $ 2,653.07 $ 8,482.33 $ 43,410.97 0 214 $ 107.34  
23 $ 19,690.66 $ 2,656.75 $ 8,490.12 $ 43,471.09 0 210 $ 861.49  
24 $ 19,692.13 $ 2,660.42 $ 8,497.90 $ 43,531.22 0 207 $ 533.45  
25 $ 19,693.60 $ 2,664.10 $ 8,505.69 $ 43,591.34 0 204 $ 338.58  
26 $ 19,695.07 $ 2,667.77 $ 8,513.47 $ 43,651.47 0 201 $ 272.93  
27 $ 19,696.53 $ 2,671.45 $ 8,521.25 $ 43,711.60 0 198 $ 332.67  
28 $ 19,698.00 $ 2,675.12 $ 8,529.04 $ 43,771.72 0 195 $ 514.04  
29 $ 19,699.47 $ 2,678.80 $ 8,536.82 $ 43,831.85 0 192 $ 813.40  
30 $ 19,700.94 $ 2,682.47 $ 8,544.60 $ 43,891.97 0 189 $ 1,227.16  
31 $ 19,702.41 $ 2,686.14 $ 8,552.39 $ 43,952.10 0 187 $ 444.39  
32 $ 19,703.88 $ 2,689.82 $ 8,560.17 $ 44,012.23 0 184 $ 1,070.20  
33 $ 19,705.34 $ 2,693.49 $ 8,567.95 $ 44,072.35 0 182 $ 473.53  
34 $ 19,706.81 $ 2,697.17 $ 8,575.74 $ 44,132.48 0 179 $ 1,300.46  
35 $ 19,708.28 $ 2,700.84 $ 8,583.52 $ 44,192.60 0 177 $ 881.40  
36 $ 19,709.75 $ 2,704.52 $ 8,591.31 $ 44,252.73 0 175 $ 542.08  
37 $ 19,711.22 $ 2,708.19 $ 8,599.09 $ 44,312.86 0 173 $ 280.96  
38 $ 19,712.69 $ 2,711.87 $ 8,606.87 $ 44,372.98 0 171 $ 96.54  
39 $ 19,714.15 $ 2,715.54 $ 8,614.66 $ 44,433.11 796 168 $ 1,377.40  
40 $ 19,715.62 $ 2,719.22 $ 8,622.44 $ 44,493.23 668 166 $ 1,352.13  
41 $ 19,717.09 $ 2,722.89 $ 8,630.22 $ 44,553.36 601 164 $ 1,398.75  
42 $ 19,718.56 $ 2,726.57 $ 8,638.01 $ 44,613.49 554 163 $ 96.40  
43 $ 19,720.03 $ 2,730.24 $ 8,645.79 $ 44,673.61 519 161 $ 273.60  
44 $ 19,721.50 $ 2,733.91 $ 8,653.58 $ 44,733.74 491 159 $ 518.93  
45 $ 19,722.96 $ 2,737.59 $ 8,661.36 $ 44,793.86 468 157 $ 831.03  
46 $ 19,724.43 $ 2,741.26 $ 8,669.14 $ 44,853.99 448 155 $ 1,208.57  
47 $ 19,725.90 $ 2,744.94 $ 8,676.93 $ 44,914.12 430 154 $ 181.28  
48 $ 19,727.37 $ 2,748.61 $ 8,684.71 $ 44,974.24 415 152 $ 678.66  
49 $ 19,728.84 $ 2,752.29 $ 8,692.49 $ 45,034.37 401 150 $ 1,237.99  
50 $ 19,730.31 $ 2,755.96 $ 8,700.28 $ 45,094.49 389 149 $ 360.06  
51 $ 19,731.77 $ 2,759.64 $ 8,708.06 $ 45,154.62 377 147 $ 1,033.40  
52 $ 19,733.24 $ 2,763.31 $ 8,715.84 $ 45,214.75 367 146 $ 246.74  
53 $ 19,734.71 $ 2,766.99 $ 8,723.63 $ 45,274.87 357 144 $ 1,030.54  
54 $ 19,736.18 $ 2,770.66 $ 8,731.41 $ 45,335.00 348 143 $ 332.79  
55 $ 19,737.65 $ 2,774.34 $ 8,739.20 $ 45,395.12 340 141 $ 1,223.60  
56 $ 19,739.12 $ 2,778.01 $ 8,746.98 $ 45,455.25 332 140 $ 612.47  
57 $ 19,740.58 $ 2,781.68 $ 8,754.76 $ 45,515.38 324 139 $ 37.14  
58 $ 19,742.05 $ 2,785.36 $ 8,762.55 $ 45,575.50 317 137 $ 1,080.17  
59 $ 19,743.52 $ 2,789.03 $ 8,770.33 $ 45,635.63 311 136 $ 588.35  
60 $ 19,744.99 $ 2,792.71 $ 8,778.11 $ 45,695.75 305 135 $ 131.15  
61 $ 19,746.46 $ 2,796.38 $ 8,785.90 $ 45,755.88 299 133 $ 1,319.93  
62 $ 19,747.93 $ 2,800.06 $ 8,793.68 $ 45,816.01 293 132 $ 943.23  
63 $ 19,749.39 $ 2,803.73 $ 8,801.46 $ 45,876.13 288 131 $ 600.01  
64 $ 19,750.86 $ 2,807.41 $ 8,809.25 $ 45,936.26 283 130 $ 289.94  
65 $ 19,752.33 $ 2,811.08 $ 8,817.03 $ 45,996.38 278 129 $ 12.71  
66 $ 19,753.80 $ 2,814.76 $ 8,824.82 $ 46,056.51 273 127 $ 1,429.35  
67 $ 19,755.27 $ 2,818.43 $ 8,832.60 $ 46,116.64 269 126 $ 1,228.11  
68 $ 19,756.74 $ 2,822.11 $ 8,840.38 $ 46,176.76 264 125 $ 1,058.61  
69 $ 19,758.20 $ 2,825.78 $ 8,848.17 $ 46,236.89 260 124 $ 920.56  
70 $ 19,759.67 $ 2,829.45 $ 8,855.95 $ 46,297.01 256 123 $ 813.65  
71 $ 19,761.14 $ 2,833.13 $ 8,863.73 $ 46,357.14 252 122 $ 737.60  
72 $ 19,762.61 $ 2,836.80 $ 8,871.52 $ 46,417.27 249 121 $ 692.12  
73 $ 19,764.08 $ 2,840.48 $ 8,879.30 $ 46,477.39 245 120 $ 676.90  
74 $ 19,765.55 $ 2,844.15 $ 8,887.09 $ 46,537.52 242 119 $ 691.67  
75 $ 19,767.01 $ 2,847.83 $ 8,894.87 $ 46,597.64 238 118 $ 736.14  
76 $ 19,768.48 $ 2,851.50 $ 8,902.65 $ 46,657.77 235 117 $ 810.03  
77 $ 19,769.95 $ 2,855.18 $ 8,910.44 $ 46,717.90 232 116 $ 913.05  
78 $ 19,771.42 $ 2,858.85 $ 8,918.22 $ 46,778.02 229 115 $ 1,044.93  
79 $ 19,772.89 $ 2,862.53 $ 8,926.00 $ 46,838.15 226 114 $ 1,205.39  
80 $ 19,774.36 $ 2,866.20 $ 8,933.79 $ 46,898.27 223 113 $ 1,394.16  
81 $ 19,775.82 $ 2,869.88 $ 8,941.57 $ 46,958.40 220 112 $ 1,610.97  
82 $ 19,777.29 $ 2,873.55 $ 8,949.35 $ 47,018.53 218 112 $ 35.74  
83 $ 19,778.76 $ 2,877.22 $ 8,957.14 $ 47,078.65 215 111 $ 299.32  
84 $ 19,780.23 $ 2,880.90 $ 8,964.92 $ 47,138.78 213 110 $ 590.29  
85 $ 19,781.70 $ 2,884.57 $ 8,972.71 $ 47,198.90 210 109 $ 908.38  
86 $ 19,783.17 $ 2,888.25 $ 8,980.49 $ 47,259.03 208 108 $ 1,253.34  
87 $ 19,784.63 $ 2,891.92 $ 8,988.27 $ 47,319.16 205 107 $ 1,624.90  
88 $ 19,786.10 $ 2,895.60 $ 8,996.06 $ 47,379.28 203 107 $ 143.62  
89 $ 19,787.57 $ 2,899.27 $ 9,003.84 $ 47,439.41 201 106 $ 559.99  
90 $ 19,789.04 $ 2,902.95 $ 9,011.62 $ 47,499.53 199 105 $ 1,002.35  
91 $ 19,790.51 $ 2,906.62 $ 9,019.41 $ 47,559.66 197 104 $ 1,470.43  
92 $ 19,791.98 $ 2,910.30 $ 9,027.19 $ 47,619.79 195 104 $ 44.25  
93 $ 19,793.44 $ 2,913.97 $ 9,034.97 $ 47,679.91 193 103 $ 555.96  
94 $ 19,794.91 $ 2,917.65 $ 9,042.76 $ 47,740.04 191 102 $ 1,092.80  
95 $ 19,796.38 $ 2,921.32 $ 9,050.54 $ 47,800.16 189 101 $ 1,654.52  
96 $ 19,797.85 $ 2,924.99 $ 9,058.33 $ 47,860.29 187 101 $ 282.48  
97 $ 19,799.32 $ 2,928.67 $ 9,066.11 $ 47,920.42 185 100 $ 886.68  
98 $ 19,800.79 $ 2,932.34 $ 9,073.89 $ 47,980.54 183 99 $ 1,515.16  
99 $ 19,802.25 $ 2,936.02 $ 9,081.68 $ 48,040.67 181 99 $ 178.71  

Last Updated on 2/5/01
By Richard L.W. Brown