Focus on Personal Finance 12th Edition by Jack Kapoor, Les Dlabay, Robert J. Hughes & Melissa Hart – ISBN 9781259720680 – Complete Solution Manual for All Chapters 1–14

SOLUTION MANUAL
Focus on Personal Finance 12th Edition
By Kapoor, Robert
All Chapter (1-14) Completed




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, TABLE OF CONTENT b b




1. Personal Financial Planning in Action
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APPENDIX: Time Value of Money
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2. Money Management Skills
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APPENDIX: Developing a Career Strategy
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3. Taxes in Your Financial Plan
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4. Financial Services Savings Plans and Payment Accounts
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5. Consumer Credit Advantages, Disadvantages, Sources, and Costs
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APPENDIX: Education Financing, Loans, and Scholarships
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6. Consumer Purchasing and Wise Buying Strategies
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APPENDIX: Consumer Agencies and Organizations
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7. Selecting and Financing Housing
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8. Home and Automobile Insurance
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9. Health and Disability Income Insurance
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10. Financial Planning with Life Insurance
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11. Investing Basics and Evaluating Bonds
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12. Investing in Stocks
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13. Investing in Mutual Funds
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14. Starting Early Retirement and Estate Planning
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,Chapter 1-19 b




Chapter 1 Problems b b




1. Calculating the Future Value of Property. Ben Collins plans to buy a house for $220,000. If that real e
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state is expected to increase in value 3 percent each year, what would its approximate value be seve
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n years from now?
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Solution: $220,000  1.230 = $270,600 L b b b b b b




O: 1-2 b




Topic: Future value b b b




LOD: Intermediate b b




Bloom tag: Apply b b




2. Using the Rule of 72. Using the rule of 72, approximate the following:
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a. If land in an area is increasing 6 percent a year, how long will it take for property values to dou
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ble?
b. If you earn 10 percent on your investments, how long would it take for your money to double?
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c. At an annual interest rate of 5 percent, how long would it take for your savings to double?
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Solution: a. about 12 years (72/6) b b b b b




b. about 7.2 years (72/10)
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c. about 14.4 years (72/5) L
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O: 1-2 b




Topic: Time value of money – b b b b b




number of periods LOD: Basic
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Bloom tag: Apply b b




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, 3. Determining the Inflation Rate. In 2006, selected new automobiles had an average cost of
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$16,000. The average cost of those same motor vehicles is now $28,000. What was the rate of increase fo
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r this item between the two time periods?
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Solution: ($28,000 – b b




$16,000) / $16,000 = .75 (75 percent) LO: 1-2
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Topic: Time value of money –
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interest rates and inflation LOD: Intermediate
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Bloom tag: Apply b b




4. Computing Future Living Expenses. A family spends $48,000 a year for living expenses. If prices inc
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rease by 2 percent a year for the next three years, what amount will the family need for its living expen
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ses?


Solution: $48,000  1.061 = $50,928 (Future value of single amount for 3 years at 2 percent) LO: 1-
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2
Topic: Future value LO
b b b




D: Basicb




Bloom tag: Apply b b




5. Calculating Earnings on Savings. What would be the yearly earnings for a person with $8,000 in sa
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vings at an annual interest rate of 2.5 percent?
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Solution: $8,000  .025 = $200 LO:
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1-4
b




Topic: Time value of money –
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interest rates and inflation LOD: Basic
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Bloom tag: Apply b b




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