Solutions Manual for Personal

Solutions Manual for Personal Finance (2025 Release) By Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart (All Chapters 1-19, 100% Original Verified, A+ Grade)

This is The Only Original Solutions Manual for 2025 Evergreen Release, All Other Files in the Market are Fake/Old/Wrong Edition.Supplement Files Download link at The end of PDF File. 1 / 4

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Kapoor, Personal Finance 2025 Release Chapter 1 Solutions

• Calculating the Future Value of Property. Antonio Lopez plans to buy a house for $280,000. If that real

estate is expected to increase in value by 3 percent each year, what will its approximate value be six years from now?

Solution: $334,334.64

LO: 1-2

Topic: Calculating the Future Value of Property

LOD: Intermediate

Bloom tag: Application

• Using the Rule of 72. Using the rule of 72, approximate the following amounts.
• If the value of land in an area is increasing 6 percent a year, how long will it take for property

values to double?

• If you earn 10 percent on your investments, how long will it take for your money to double?
• At an annual interest rate of 5 percent, how long will it take for your savings to double?

Solution:

• about 12 years (72/6)
• about 7.2 years (72/10)
• about 14.4 years (72/5)

LO: 1-2

Topic: Using the Rule of 72

LOD: Easy

Bloom tag: Application

• Determining the Inflation Rate. In 2020, selected automobiles had an average cost of $16,000. The

average cost of those same automobiles is now $24,000. What was the rate of increase for these automobiles between the two time periods?

Solution: ($24,000 – $16,000) / $16,000 = .50 (50 percent)

LO: 1-2

Topic: Determining the Inflation Rate

LOD: Medium

Bloom tag: Application

• Computing Future Living Expenses. A family spends $52,000 a year for living expenses. If prices

increase by 2 percent a year for the next three years, what amount will the family need for their living expenses after three years? 2 / 4

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Solution: $55,182.82

LO: 1-2

Topic: Computing Future Living Expenses

LOD: Easy

Bloom tag: Application

• 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

LO: 1-4

Topic: Calculating Earnings on Savings

LOD: Easy

Bloom tag: Application

• Computing the Time Value of Money. Using a financial calculator or time value of money tables in the

Chapter Appendix, calculate the following.

• The future value of $450 six years from now at 6 percent.
• The future value of $800 saved each year for 10 years at 8 percent.
• The amount a person would have to deposit today (present value) at a 6 percent interest rate to

have $1,000 four years from now.

• 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 7 percent.

Solution:

• $638.33
• $11,589,25
• $792.09
• $3,511.79

LO: 1-4

Topic: Computing the Time Value of Money

LOD: Medium

Bloom tag: Application

• Calculating the Future Value of a Series of Amounts. Elaine Romberg prepares her own income tax

return each year. A tax preparer would charge her $70 for this service. Over a period of 10 years, how much does Elaine gain from preparing her own tax return? Assume she can earn 3 percent on her savings.

Solution: $70  11.464 = $802.47

LO: 1-4

Topic: Calculating the Future Value of a Series of Amounts

LOD: Difficult 3 / 4

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Bloom tag: Application

• Calculating the Time Value of Money for Savings Goals. If you desire to have $22,000 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.

Solution: $18,082.40

LO: 1-4

Topic: Calculating the Time Value of Money for Savings Goals

LOD: Intermediate

Bloom tag: Application

• Calculating the Present Value of a Series. Callen Patel is planning to go to graduate school in a program

of study that will take three years. Callen Pete wants to have $15,000 available each year for various school and living expenses. If he earns 4 percent on his money, how much must be deposited at the start of his studies to be able to withdraw $15,000 a year for three years?

Solution: $41,626.37

LO: 1-4

Topic: Calculating the Present Value of a Series

LOD: Hard

Bloom tag: Application

• Using the Time Value of Money for Retirement Planning. Carla Franz deposits $3,000 a year into her

retirement account. If these funds have an average earning of 9 percent over the 40 years until her retirement, what will be the value of her retirement account?

Solution: $1,013,647.34

LO: 1-4

Topic: Using the Time Value of Money for Retirement Planning

LOD: Intermediate

Bloom tag: Application

• Calculating the Value of Reduced Spending. If a person spends $15 a week on coffee (assume $750 a

year), what would be the future value of that amount over 10 years if the funds were deposited in an account earning 3 percent?

Solution: $8,597.91

LO: 1-4

Topic: Calculating the Value of Reduced Spending

LOD: Easy

Bloom tag: Application

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