Complete Solutions Manual — Foundations of Business, 7th Edition — William M. Pride — ISBN 9780357717943 — (All Chapters Covered 1–18, Solutions Included)

Foundations of
Business 7th Edition
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SOLUTIONS
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MANUAL
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William M. Pride
Robert J. Hughes
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Jack R. Kapoor

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Comprehensive Solutions Manual for Instructors
and Students
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© William M. Pride, Robert J. Hughes & Jack R. Kapoor. All rights reserved. Reproduction
or distribution without permission is prohibited.
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© Successhands

, Solutions Manual for Foundations of Business (7th Edition)
William M. Pride, Robert J. Hughes & Jack R. Kapoor
ISBN: 9780357717943
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PART 1: THE ENVIRONMENT OF BUSINESS
1. Exploring the World of Business and Economics
2. Ethics and Social Responsibility in Business
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3. Global Business

PART 2: BUSINESS OWNERSHIP AND ENTREPRENEURSHIP
4. Choosing a Form of Business Ownership
5. Small Business, Entrepreneurship, and Franchises
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PART 3: MANAGEMENT AND ORGANIZATION
6. Understanding the Management Process
7. Creating a Flexible Organization
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8. Producing Quality Goods and Services

PART 4: HUMAN RESOURCES
9. Attracting and Retaining the Best Employees
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10. Motivating and Satisfying Employees

PART 5: MARKETING
11. Building Customer Relationships Through Effective Marketing
12. Creating and Pricing Products That Satisfy Customers
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13. Distributing and Promoting Products

PART 6: INFORMATION, ACCOUNTING, AND FINANCE
14. Exploring Social Media and e-Business
15. Using Management and Accounting Information
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16. Mastering Financial Management
17. Understanding Personal Finances and Investments (online-only)
18. Enhancing Union-Management Relations (online-only)
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© Successhands

, Solution Manual for
Focus on Personal Finance, 7th Edition
Chapter 1-14

Chapter 1
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(Note: Some of these problems require the use of the time value of money tables in the chapter
appendix, a financial calculator, or spreadsheet software.)

1. Using the rule of 72, approximate the following amounts. (LO 1.1)
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a. If the value of land in an area is increasing 6 percent a year, how long will it take for property
values to double?

About 12 years ()
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b. If you earn 10 percent on your investments, how long will it take for your money to double?

About 7.2 years ()
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c. At an annual interest rate of 5 percent, how long will it take for your savings to double?

About 14.4 years ()
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2. In 2019, selected automobiles had an average cost of $16,000. The average cost of those same
automobiles is now $20,000. What was the rate of increase for these automobiles between the two
time periods? (LO 1.1)

($20,000 - $16,000) / $16,000 = .25 (25 percent)
RISO
3. A family spends $46,000 a year for living expenses. If prices increase by 3 percent a year for the
next three years, what amount will the family need for their living expenses after three years? (LO
1.1)
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46,000  1.09 = $50,140; or using Exhibit 1-A: $46,000  1.093 = $50,278
EDU
4. Ben Collins plans to buy a house for $260,000. If the real estate in his area is expected to increase
in value by 2 percent each year, what will its approximate value be seven years from now? (LO 1.1)

$260,000  1.149 = $298,740; or using Exhibit 1-A: $260,000  1.149 = $298,740
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5. What would be the yearly earnings for a person with $9,000 in savings at an annual interest rate of
1.5 percent? (LO 1.3)
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.

, $9,000  0.015 = $135


6. Using time value of money tables (Exhibit 1–3 or chapter appendix tables), calculate the following.
(LO 1.3)
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a. The future value of $550 six years from now at 7 percent.
$550  1.501 = $825.55 (Exhibit 1-A)
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b. The future value of $900 saved each year for 10 years at 8 percent.
$900  14.487 = $13,038.30 (Exhibit 1-B)

c. The amount a person would have to deposit today (present value) at a 5 percent interest rate to
have $1,000 five years from now.
$1,000  0.784 = $784 (Exhibit 1-C)
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d. The amount a person would have to deposit today to be able to take out $500 a year for 10 years
from an account earning 8 percent.
$500  6.710 = $3,355 (Exhibit 1-D)
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7. If you desire to have $12,000 for a down payment for a house in five years, what amount would
you need to deposit today? Assume that your money will earn 4 percent. (LO 1.3)

$12,000  0.822 = $9,864 (Exhibit 1-C)
PNPO

8. Pete Morton is planning to go to graduate school in a program of study that will take three years.
Pete wants to have $8,000 available each year for various school and living expenses. If he earns 3
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percent on his money, how much must he deposit at the start of his studies to be able to withdraw
$8,000 a year for three years? (LO 1.3)

$8,000  2.829 = $22,632 (Exhibit 1-D)
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9. Carla Lopez deposits $2,800 a year into her retirement account. If these funds have an average
earning of 7 percent over the 40 years until her retirement, what will be the value of her retirement
account? (LO 1.3)
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$2,800  199.635 = $558,978 (Exhibit 1-B)


10. If a person spends $10 a week on coffee (assume $500 a year), what would be the future value of
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that amount over 10 years if the funds were deposited in an account earning 3 percent? (LO 1.3)

$500  11.464 = $5,732 (Exhibit 1-B)

Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.