Focus on Personal
Finance 12th Edition
ST
UV
SOLUTIONS
IA
MANUAL
_A
PP
Jack Kapoor
Les Dlabay
RO
Robert J. Hughes
Melissa Hart
VE
────────────────────────────────────────────────────
Comprehensive Solutions Manual for Instructors
D?
and Students
© Jack Kapoor, Les Dlabay, Robert J. Hughes & Melissa Hart. All rights reserved.
?
Reproduction or distribution without permission is prohibited.
© Successhands
, Solutions Manual for Focus on Personal Finance (12th Edition)
Jack Kapoor, Les Dlabay, Robert J. Hughes & Melissa Hart
ISBN: 9781259720680
ST
PART 1: PLANNING YOUR PERSONAL FINANCES
1. Personal Finance Basics and the Time Value of Money
Appendix: The Time Value of Money
2. Financial Aspects of Career Planning
UV
Appendix: Résumés, Cover Letters, and Interviews
3. Money Management Strategy: Financial Statements and Budgeting
4. Planning Your Tax Strategy
PART 2: MANAGING YOUR PERSONAL FINANCES
IA
5. Financial Services: Savings Plans and Payment Accounts
6. Introduction to Consumer Credit
7. Choosing a Source of Credit: The Costs of Credit Alternatives
_A
PART 3: MAKING YOUR PURCHASING DECISIONS
8. Consumer Purchasing Strategies and Legal Protection
9. The Housing Decision: Factors and Finances
PP
PART 4: INSURING YOUR RESOURCES
10. Property and Motor Vehicle Insurance
11. Health, Disability, and Long-Term Care Insurance
12. Life Insurance
RO
PART 5: INVESTING YOUR FINANCIAL RESOURCES
13. Investing Fundamentals
14. Investing in Stocks
15. Investing in Bonds
VE
16. Investing in Mutual Funds
17. Investing in Real Estate and Other Investment Alternatives
PART 6: CONTROLLING YOUR FINANCIAL FUTURE
D?
18. Starting Early: Retirement Planning
19. Estate Planning
?
© Successhands
, asdfghjhgfghjlkjhgqwertyuiopoiuytrtyuiooiuyxcvbnmnbvcxcjhgfdsdfghjiiuytreertyi
Solution Manual for:
Focus on Personal Finance 12th Edition by Jack Kapoor, Les Dlabay, Robert J.
ST
Hughes & Melissa Hart ISBN-13 978-1259720680
Chapter 1-19
UV
Chapter 1 Problems
1. Calculating the Future Value of Property. Ben Collins plans to buy a house for $220,000. If that
real estate is expected to increase in value 3 percent each year, what would its approximate value
IA
be seven years from now?
_A
Solution: $220,000 1.230 = $270,600
LO: 1-2
Topic: Future value
LOD: Intermediate
PP
Bloom tag: Apply
RO
2. Using the Rule of 72. Using the rule of 72, approximate the following:
a. If land in an area is increasing 6 percent a year, how long will it take for property values to
double?
b. If you earn 10 percent on your investments, how long would it take for your money to double?
VE
c. At an annual interest rate of 5 percent, how long would it take for your savings to double?
Solution: a. about 12 years (72/6)
D?
b. about 7.2 years (72/10)
c. about 14.4 years (72/5)
LO: 1-2
Topic: Time value of money – number of periods
?
LOD: Basic
Bloom tag: Apply
asdfhjhgfiuytrewertyuiuytreyiuytrevcxcvbnmnbvcvbnjhgfdfghjhgfdiuytr
, asdfghjhgfghjlkjhgqwertyuiopoiuytrtyuiooiuyxcvbnmnbvcxcjhgfdsdfghjiiuytreertyi
3. Determining the Inflation Rate. In 2006, selected new automobiles had an average cost of
$16,000. The average cost of those same motor vehicles is now $28,000. What was the rate of
ST
increase for this item between the two time periods?
Solution: ($28,000 – $16,000) / $16,000 = .75 (75 percent)
UV
LO: 1-2
Topic: Time value of money – interest rates and inflation
LOD: Intermediate
Bloom tag: Apply
IA
4. Computing Future Living Expenses. A family spends $48,000 a year for living expenses. If prices
_A
increase by 2 percent a year for the next three years, what amount will the family need for its living
expenses?
PP
Solution: $48,000 1.061 = $50,928 (Future value of single amount for 3 years at 2 percent)
LO: 1-2
Topic: Future value
RO
LOD: Basic
Bloom tag: Apply
VE
5. Calculating Earnings on Savings. What would be the yearly earnings for a person with $8,000 in
savings at an annual interest rate of 2.5 percent?
Solution: $8,000 .025 = $200
D?
LO: 1-4
Topic: Time value of money – interest rates and inflation
LOD: Basic
?
Bloom tag: Apply
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Finance 12th Edition
ST
UV
SOLUTIONS
IA
MANUAL
_A
PP
Jack Kapoor
Les Dlabay
RO
Robert J. Hughes
Melissa Hart
VE
────────────────────────────────────────────────────
Comprehensive Solutions Manual for Instructors
D?
and Students
© Jack Kapoor, Les Dlabay, Robert J. Hughes & Melissa Hart. All rights reserved.
?
Reproduction or distribution without permission is prohibited.
© Successhands
, Solutions Manual for Focus on Personal Finance (12th Edition)
Jack Kapoor, Les Dlabay, Robert J. Hughes & Melissa Hart
ISBN: 9781259720680
ST
PART 1: PLANNING YOUR PERSONAL FINANCES
1. Personal Finance Basics and the Time Value of Money
Appendix: The Time Value of Money
2. Financial Aspects of Career Planning
UV
Appendix: Résumés, Cover Letters, and Interviews
3. Money Management Strategy: Financial Statements and Budgeting
4. Planning Your Tax Strategy
PART 2: MANAGING YOUR PERSONAL FINANCES
IA
5. Financial Services: Savings Plans and Payment Accounts
6. Introduction to Consumer Credit
7. Choosing a Source of Credit: The Costs of Credit Alternatives
_A
PART 3: MAKING YOUR PURCHASING DECISIONS
8. Consumer Purchasing Strategies and Legal Protection
9. The Housing Decision: Factors and Finances
PP
PART 4: INSURING YOUR RESOURCES
10. Property and Motor Vehicle Insurance
11. Health, Disability, and Long-Term Care Insurance
12. Life Insurance
RO
PART 5: INVESTING YOUR FINANCIAL RESOURCES
13. Investing Fundamentals
14. Investing in Stocks
15. Investing in Bonds
VE
16. Investing in Mutual Funds
17. Investing in Real Estate and Other Investment Alternatives
PART 6: CONTROLLING YOUR FINANCIAL FUTURE
D?
18. Starting Early: Retirement Planning
19. Estate Planning
?
© Successhands
, asdfghjhgfghjlkjhgqwertyuiopoiuytrtyuiooiuyxcvbnmnbvcxcjhgfdsdfghjiiuytreertyi
Solution Manual for:
Focus on Personal Finance 12th Edition by Jack Kapoor, Les Dlabay, Robert J.
ST
Hughes & Melissa Hart ISBN-13 978-1259720680
Chapter 1-19
UV
Chapter 1 Problems
1. Calculating the Future Value of Property. Ben Collins plans to buy a house for $220,000. If that
real estate is expected to increase in value 3 percent each year, what would its approximate value
IA
be seven years from now?
_A
Solution: $220,000 1.230 = $270,600
LO: 1-2
Topic: Future value
LOD: Intermediate
PP
Bloom tag: Apply
RO
2. Using the Rule of 72. Using the rule of 72, approximate the following:
a. If land in an area is increasing 6 percent a year, how long will it take for property values to
double?
b. If you earn 10 percent on your investments, how long would it take for your money to double?
VE
c. At an annual interest rate of 5 percent, how long would it take for your savings to double?
Solution: a. about 12 years (72/6)
D?
b. about 7.2 years (72/10)
c. about 14.4 years (72/5)
LO: 1-2
Topic: Time value of money – number of periods
?
LOD: Basic
Bloom tag: Apply
asdfhjhgfiuytrewertyuiuytreyiuytrevcxcvbnmnbvcvbnjhgfdfghjhgfdiuytr
, asdfghjhgfghjlkjhgqwertyuiopoiuytrtyuiooiuyxcvbnmnbvcxcjhgfdsdfghjiiuytreertyi
3. Determining the Inflation Rate. In 2006, selected new automobiles had an average cost of
$16,000. The average cost of those same motor vehicles is now $28,000. What was the rate of
ST
increase for this item between the two time periods?
Solution: ($28,000 – $16,000) / $16,000 = .75 (75 percent)
UV
LO: 1-2
Topic: Time value of money – interest rates and inflation
LOD: Intermediate
Bloom tag: Apply
IA
4. Computing Future Living Expenses. A family spends $48,000 a year for living expenses. If prices
_A
increase by 2 percent a year for the next three years, what amount will the family need for its living
expenses?
PP
Solution: $48,000 1.061 = $50,928 (Future value of single amount for 3 years at 2 percent)
LO: 1-2
Topic: Future value
RO
LOD: Basic
Bloom tag: Apply
VE
5. Calculating Earnings on Savings. What would be the yearly earnings for a person with $8,000 in
savings at an annual interest rate of 2.5 percent?
Solution: $8,000 .025 = $200
D?
LO: 1-4
Topic: Time value of money – interest rates and inflation
LOD: Basic
?
Bloom tag: Apply
asdfhjhgfiuytrewertyuiuytreyiuytrevcxcvbnmnbvcvbnjhgfdfghjhgfdiuytr
