Solution manual
focus on personal finance 12th edition
by jack Kapoor les Dlabay and Robert J Hughes
All Chapters 1-19 Covered
,Focus on Personal Finance 12th Edition by Jack Kapoor, Les Dlabay, Robert J. Hughes & Melissa
T T T T T T T T T T T T T T T
T Hart T
Chapter 1-19 T
ChapterT1TProblems
1. CalculatingTtheTFutureTValueTofTProperty.TBenTCollinsTplansTtoTbuyTaThouseTforT$220,000.TIfTthatTrealTestateTisT
expectedTtoTincreaseTinTvalueT3TpercentTeachTyear,TwhatTwouldTitsTapproximateTvalueTbeTsevenTyearsTfromTno
w?
Solution:T $220,000T T 1.230T=T$270,600TLO:T1
-2
Topic:TFutureTvalueTL
OD:TIntermediateTBlo
omTtag:TApply
2. UsingTtheTRuleTofT72.T UsingTtheTruleTofT72,TapproximateTtheTfollowing:
a. IfTlandTinTanTareaTisTincreasingT6TpercentTaTyear,ThowTlongTwillTitTtakeTforTpropertyTvaluesTtoTdouble?
b. IfTyouTearnT10TpercentTonTyourTinvestments,ThowTlongTwouldTitTtakeTforTyourTmoneyTtoTdouble?
c. AtTanTannualTinterestTrateTofT5Tpercent,ThowTlongTwouldTitTtakeTforTyourTsavingsTtoTdouble?
,Solution:T a.TaboutT12TyearsT(72/6)
b.TaboutT7.2TyearsT(72/10)
c.TaboutT14.4TyearsT(72/5)TLO
:T1-2
Topic:TTimeTvalueTofTmoneyT–
numberTofTperiodsTLOD:TBasic
T
BloomTtag:TApply
, 3. DeterminingTtheTInflationTRate.T InT2006,TselectedTnewTautomobilesThadTanTaverageTcostTof
$16,000.TTheTaverageTcostTofTthoseTsameTmotorTvehiclesTisTnowT$28,000.TWhatTwasTtheTrateTofTincreaseTforTthisTi
temTbetweenTtheTtwoTtimeTperiods?
Solution:T ($28,000T–T$16,000)T/T$16,000T=T.75T(75Tpercent)TLO:T1-2
Topic:TTimeTvalueTofTmoneyT–
TinterestTratesTandTinflationTLOD:T Intermediate
BloomTtag:TApply
4. ComputingTFutureTLivingTExpenses.T ATfamilyTspendsT$48,000TaTyearTforTlivingTexpenses.TIfTpricesTincreaseTbyT
2TpercentTaTyearTforTtheTnextTthreeTyears,TwhatTamountTwillTtheTfamilyTneedTforTitsTlivingTexpenses?
Solution:T $48,000T T 1.061T=T$50,928T(FutureTvalueTofTsingleTamountTforT3TyearsTatT2Tpercent)TLO:T1-2
Topic:TFutureTvalueTLOD
:T Basic
BloomTtag:TApply
5. CalculatingTEarningsTonTSavings.T WhatTwouldTbeTtheTyearlyTearningsTforTaTpersonTwithT$8,000TinTsavingsTatT
anTannualTinterestTrateTofT2.5Tpercent?
Solution:T $8,000T T .025T=T$200TLO:T1-
4
Topic:TTimeTvalueTofTmoneyT–
TinterestTratesTandTinflationTLOD:TBasic
BloomTtag:TApply
focus on personal finance 12th edition
by jack Kapoor les Dlabay and Robert J Hughes
All Chapters 1-19 Covered
,Focus on Personal Finance 12th Edition by Jack Kapoor, Les Dlabay, Robert J. Hughes & Melissa
T T T T T T T T T T T T T T T
T Hart T
Chapter 1-19 T
ChapterT1TProblems
1. CalculatingTtheTFutureTValueTofTProperty.TBenTCollinsTplansTtoTbuyTaThouseTforT$220,000.TIfTthatTrealTestateTisT
expectedTtoTincreaseTinTvalueT3TpercentTeachTyear,TwhatTwouldTitsTapproximateTvalueTbeTsevenTyearsTfromTno
w?
Solution:T $220,000T T 1.230T=T$270,600TLO:T1
-2
Topic:TFutureTvalueTL
OD:TIntermediateTBlo
omTtag:TApply
2. UsingTtheTRuleTofT72.T UsingTtheTruleTofT72,TapproximateTtheTfollowing:
a. IfTlandTinTanTareaTisTincreasingT6TpercentTaTyear,ThowTlongTwillTitTtakeTforTpropertyTvaluesTtoTdouble?
b. IfTyouTearnT10TpercentTonTyourTinvestments,ThowTlongTwouldTitTtakeTforTyourTmoneyTtoTdouble?
c. AtTanTannualTinterestTrateTofT5Tpercent,ThowTlongTwouldTitTtakeTforTyourTsavingsTtoTdouble?
,Solution:T a.TaboutT12TyearsT(72/6)
b.TaboutT7.2TyearsT(72/10)
c.TaboutT14.4TyearsT(72/5)TLO
:T1-2
Topic:TTimeTvalueTofTmoneyT–
numberTofTperiodsTLOD:TBasic
T
BloomTtag:TApply
, 3. DeterminingTtheTInflationTRate.T InT2006,TselectedTnewTautomobilesThadTanTaverageTcostTof
$16,000.TTheTaverageTcostTofTthoseTsameTmotorTvehiclesTisTnowT$28,000.TWhatTwasTtheTrateTofTincreaseTforTthisTi
temTbetweenTtheTtwoTtimeTperiods?
Solution:T ($28,000T–T$16,000)T/T$16,000T=T.75T(75Tpercent)TLO:T1-2
Topic:TTimeTvalueTofTmoneyT–
TinterestTratesTandTinflationTLOD:T Intermediate
BloomTtag:TApply
4. ComputingTFutureTLivingTExpenses.T ATfamilyTspendsT$48,000TaTyearTforTlivingTexpenses.TIfTpricesTincreaseTbyT
2TpercentTaTyearTforTtheTnextTthreeTyears,TwhatTamountTwillTtheTfamilyTneedTforTitsTlivingTexpenses?
Solution:T $48,000T T 1.061T=T$50,928T(FutureTvalueTofTsingleTamountTforT3TyearsTatT2Tpercent)TLO:T1-2
Topic:TFutureTvalueTLOD
:T Basic
BloomTtag:TApply
5. CalculatingTEarningsTonTSavings.T WhatTwouldTbeTtheTyearlyTearningsTforTaTpersonTwithT$8,000TinTsavingsTatT
anTannualTinterestTrateTofT2.5Tpercent?
Solution:T $8,000T T .025T=T$200TLO:T1-
4
Topic:TTimeTvalueTofTmoneyT–
TinterestTratesTandTinflationTLOD:TBasic
BloomTtag:TApply
