SolutionVandVAnswerVGuide:VGarman/Fox,VPersonalVFinanceV14e,VChapterV1:VThinkingVLikeVaVFin
ancialVPlanner
Solution and Answer Guide V V V
GARMAN/FOX,V PERSONALV FINANCEV 14E,V CHAPTERV 1:V THINKINGV LIKEV AV FINANCIALV PLANNER
TABLEVOFVCONTENTS
AnswersVtoVChapterVConceptVChecks .................................................................................................... 2
WhatVDoVYouVRecommendVNow? .......................................................................................................... 4
Let’sVTalkVAboutVIt .................................................................................................................................. 5
DoVtheVMath ............................................................................................................................................... 6
FinancialVPlanningVCases .......................................................................................................................... 8
ExtendedVLearning ................................................................................................................................... 10
©V2024VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,Vcopied,VorVduplicated,VorVpostedVtoVaVpubl 1
iclyVaccessible
website,VinVwholeVorVinVpart.
, SolutionVandVAnswerVGuide:VGarman/Fox,VPersonalVFinanceV14e,VChapterV1:VThinkingVLikeVaVFin
ancialVPlanner
ANSWERSVTOVCHAPTERVCONCEPTVCHECKS
LO1.1VRecognizeVtheVkeysVtoVachievingVfinancialVsuccess.
1. ExplainVtheVfiveVstepsVinVtheVfinancialVplanningVprocess.
Answer:VThereVareVfiveVfundamentalVstepsVtoVtheVpersonalVfinancialVplanningVprocess:V(1)Vevaluat
eVyourVfinancialVhealthVtoVyourVeducationVandVcareerVchoice;V(2)VdefineVyourVfinancialVgoals;V(3)
VdevelopVaVplanVofVactionVtoVachieveVyourVgoals;V(4)VimplementVspendingVandVsavingVplansVtoV
monitorVandVcontrolVprogressVtowardVyourVgoals;VandV(5)VreviewVyourVfinancialVprogressVandVma
keVchangesVasVappropriate.
2. DistinguishVamongVfinancialVsuccess,VfinancialVsecurity,VandVfinancialVhappiness.
Answer:VFinancialVsuccessVisVtheVachievementVofVfinancialVaspirationsVthatVareVdesired,Vplanned,
VorVattempted.VSuccessVisVdefinedVbyVtheVindividualVorVfamilyVthatVseeksVit.VFinancialVsuccessVm
ayVbeVdefinedVasVbeingVableVtoVliveVaccordingVtoVone’sVstandardVofVliving.VFinancialVsecurityVis
VthatVcomfortableVfeelingVthatVyourVfinancialVresourcesVwillVbeVadequateVtoVfulfillVanyVneedsVyou
VhaveVasVwellVasVyourVwants.VFinancialVhappinessVisVtheVexperienceVyouVhaveVwhenVyouVareVs
atisfiedVwithVmoneyVmatters.VPeopleVwhoVareVhappyVaboutVtheirVfinancesVwillVseeVaVspilloverVint
oVpositiveVfeelingsVaboutVlifeVinVgeneral.
3. SummarizeVwhatVyouVwillVaccomplishVstudyingVpersonalVfinance.
Answer:VSeveralVthingsVcanVbeVaccomplishedVbyVstudyingVpersonalVfinance.VRecognizeVhowVtoVm
anageVunexpectedVandVexpectedVfinancialVevents.VPayVasVlittleVasVpossibleVinVincomeVtaxes.VUnde
rstandVhowVtoVeffectivelyVcomparisonVshopVforVvehiclesVandVhomes.VProtectVwhatVweVown.VInvest
Vwisely.VAccumulateVandVprotectVtheVwealthVthatVweVmayVchooseVtoVspendVduringVourVnon-
workingVyearsV(e.g.,Vretirement)VorVdonate.
4. WhatVareVtheVbuildingVblocksVtoVachievingVfinancialVsuccess?
Answer:VTheVbuildingVblocksVforVachievingVfinancialVsuccessVincludeVaVfoundationVofVregularVinc
omeVthatVprovidesVtheVmeansVtoVsupportVyourVlifestyleVandVsaveVforVdesiredVgoalsVinVtheVfuture.
VTheVfoundationVsupportsVaVbaseVofVvariousVbankingVaccounts,VinsuranceVprotection,VandVemploye
eVbenefits.VThenVweVcanVestablishVgoals,VaVrecordkeepingVsystem,VaVbudget,VandVanVemergencyVs
avingsVfund.VWeVwillValsoVmanageVvariousVexpensesVsuchVasVhousing,Vtransportation,Vinsurance,Va
ndVtheVpaymentVofVtaxes.VWeVwillValsoVneedVtoVhandleVcredit,Vsavings,VandVeducationalVcosts.VFi
nally,VweVinvestVinVvariousVinvestmentValternativesVsuchVasVmutualVfunds,Vstocks,VandVbonds,Vofte
nVforVretirement.VAsVaVresultVofVallVtheseVbuildingVblocks,VweVareVmoreVaptVtoVhaveVaVfinanciall
yVsuccessfulVlife.
LO1.2VUnderstandVhowVtheVeconomyVaffectsVyourVpersonalVfinancialVsuccess.
1. SummarizeVtheVphasesVofVtheVbusinessVcycle.
Answer:VTheVbusinessVcycleVentailsVaVwavelikeVpatternVofVrisingVandVfallingVeconomicVactivityVa
sVmeasuredVbyVeconomicVindicatorsVlikeVunemploymentVratesVorVtheVgrossVdomesticVproduct.VThe
VphasesVofVtheVbusinessVcycleVincludeVexpansionV(preferredVstage—
productionVisVhigh,VunemploymentVlow,VinterestVratesVlowVorVfalling,VstockVmarketVandVconsumer
VdemandVhigh),Vpeak,Vcontraction,Vdownturn,Vtrough,VandVrecovery.
2. DescribeVtwoVstatisticsVthatVhelpVpredictVtheVfutureVdirectionVofVtheVeconomy.
Answer:VForecastingVtheVstateVofVtheVeconomyVinvolvesVpredicting,Vestimating,VorVcalculatingVwh
atVwillVhappenVinVadvance.VWeVneedVtoVbeVableVtoVforecastVtheVstateVofVtheVeconomy,Vinflation,
©V2024VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,Vcopied,VorVduplicated,VorVpostedVtoVaVpubl 2
iclyVaccessible
website,VinVwholeVorVinVpart.
, SolutionVandVAnswerVGuide:VGarman/Fox,VPersonalVFinanceV14e,VChapterV1:VThinkingVLikeVaVFin
ancialVPlanner
VandVinterestVratesVsoVthatVweVhaveVadvanceVwarningVofVtheVdirectionsVandVstrengthVofVchangesVi
nVeconomicVtrendsVsinceVtheyVwillVaffectVourVpersonalVfinances.VTwoVstatisticsVweVcouldVwatchVa
reVtheVconsumerVconfidenceVindexV(howVconsumersVfeelVaboutVtheVeconomyVandVtheirVpersonalVfi
nances)VandVtheVindexVofVleadingVeconomicVindicatorsV(compositeVindex,VaveragesVtenVcomponents
VofVeconomicVgrowth).
©V2024VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,Vcopied,VorVduplicated,VorVpostedVtoVaVpubl 3
iclyVaccessible
website,VinVwholeVorVinVpart.
, SolutionVandVAnswerVGuide:VGarman/Fox,VPersonalVFinanceV14e,VChapterV1:VThinkingVLikeVaVFin
ancialVPlanner
3. GiveVanVexampleVofVhowVinflationVaffectsVincomeVandVconsumption.
Answer:VInflationVreducesVtheVpurchasingVpowerVofVtheVdollar.VThisVmeansVthatVourVincomeVwill
VnotVgoVasVfarVand,Vthus,VinVrealVtermsVwillVbeVloweredVbyVinflation.VBecauseVitemsVcostVmore,
VweVwillVhaveVtoVconsumeVlessVandVmayVcutVbackVonVsomeVexpendituresVtoVbeVableVtoVaffordVt
hoseVwithVaVhigherVpriority.
LO1.3VThinkVlikeVanVeconomistVwhenVmakingVfinancialVdecisions.
1. DefineVopportunityVcostVandVgiveVanVexampleVofVhowVopportunityVcostsVmightVaffectVyour
VfinancialVdecisionVmaking.
Answer:VTheVopportunityVcostVofVaVdecisionVisVmeasuredVasVtheVvalueVofVtheVnext-
bestValternativeVthatVmustVbeVforgone.VIfVwe,VforVexample,VputVourVretirementVsavingsVinVaVregul
arVsavingsVaccountVinsteadVofVinVaVtax-
VshelteredVretirementVaccount,VweVmayVbeVforgoingVtheVtaxVbenefitsVassociatedVwithVinvestingVinV
retirementVaccountsVsuchVasVIRAsVorV401(k)Vplans.VInVanotherVexample,VifVweVdecideVtoVborrow
VtheVmaximumVstudentVloanVamountVforVwhichVweVqualifyVtoVliveVaVbitVmoreVcomfortablyVwhile
VinVcollege,VweVwillVnotVbeVableVtoVliveVasVnicely,VsaveVasVmuchVforVtheVdownVpaymentVonVaV
homeVorVsaveVforVretirementVonceVweVgraduateVbecauseVofVtheVhigherVloanVpayments.
2. ExplainVandVgiveVanVexampleVofVhowVmarginalVutilityVandVmarginalVcostVmakeVsom
eVfinancialVdecisionsVeasier.
Answer:VMarginalVanalysisVfocusesVonVtheVnextVincrementVofVusefulnessVorVcostVwhenVmakingVfi
nancialVdecisions.VMarginalVutilityVisVtheVextraVsatisfactionVderivedVfromVhavingVoneVmoreVincre
mentalVunitVofVaVproductVorVservice.VMarginalVcostVisVtheVadditionalVcostVofVthatVunit.VWhenVm
arginalVutilityVexceedsV marginalVcost,VandVweVcompareVtheVtwo,VweVcanVmakeVbetterVfinancialVde
cisions.VAsVanVexample,VifVyouVmustVflyVtoVsomeVdestination,VisVtheVmarginalVcostVofVcheckingV
aVbagVusingVaVcarry-onVworthVtheVmarginalVutility?
3. DescribeVandVgiveVanVexampleVofVhowVyourVmarginalVincomeVtaxVrateVcanVaffectVfinanci
alVdecisionVmaking.
Answer:VAsVourVincomeVrises,VweVwillVfindVourselvesVinVhigherVandVhigherVtaxVbrackets.VOneVt
ypeVofVdecisionVthatVisVaffectedVbyVincomeVtaxesVisVhowVweVshouldVinvestVforVretirement.VWeVm
ightVwantVtoVinvestVthroughVaV401(k)VplanVinsteadVofVkeepingVourVretirementVmoneyVinVaVsaving
sVaccount,VwhichVisVtaxable.
SinceVmostVtypesVofVincomeVareVtaxable,VitVisVimportantVthatVweVunderstandVtheVimpactVofVincom
eVtaxesVonVfinancialVdecisions.VOfVparticularVimportanceVisVtheVmarginalVtaxVrateV(theVtaxVrateVat
VwhichVourVlastVdollarVearnedVisVtaxed).VIfVweVareVinVtheV25VpercentVmarginalVtaxVbracket,VweV
willVgetVtoVkeepV75VpercentV(100VpercentVminusV25Vpercent)VofVourVlastVtaxableVdollarVearned.VIf
VtheVincomeVisVtax-
freeVincome,VonVtheVotherVhand,VweVwouldVgetVtoVkeepV100VpercentVofVit.VTherefore,VitVisVimpor
tantVtoVknowVourVmarginalVtaxVrateVasVwellVasVwhatVtypesVofVincomeVareVsubjectVtoVfederalVinco
meVtaxes.VItVisValsoVimportantVtoVrememberVtheVimpactVofVstateVincomeVtaxesVandVSocialVSecurit
yVtaxes.
LO1.4VPerformVtimeVvalueVofVmoneyVcalculationsVinVpersonalVfinancialVdecisionVmaking.
1. WhatVareVtheVtwoVcommonVquestionsVaboutVmoney?
Answer:VTheVtwoVcommonVquestionsVaboutVmoneyVareVitsVfutureVvalueVandVpresentVvalue.VFutur
eVvalueVisVwhatVinvestmentVorVseriesVofVinvestmentsVwillVbeVatVaVpointVinVtheVfuture.VPresentVv
alueVisVhowVmuchVweVwouldVneedVtoVinvestVtodayVand/orVinVaVseriesVofVfutureVinvestmentsVtoV
provideVsomeVamountVinVtheVfuture.
©V2024VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,Vcopied,VorVduplicated,VorVpostedVtoVaVpubl 4
iclyVaccessible
website,VinVwholeVorVinVpart.
ancialVPlanner
Solution and Answer Guide V V V
GARMAN/FOX,V PERSONALV FINANCEV 14E,V CHAPTERV 1:V THINKINGV LIKEV AV FINANCIALV PLANNER
TABLEVOFVCONTENTS
AnswersVtoVChapterVConceptVChecks .................................................................................................... 2
WhatVDoVYouVRecommendVNow? .......................................................................................................... 4
Let’sVTalkVAboutVIt .................................................................................................................................. 5
DoVtheVMath ............................................................................................................................................... 6
FinancialVPlanningVCases .......................................................................................................................... 8
ExtendedVLearning ................................................................................................................................... 10
©V2024VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,Vcopied,VorVduplicated,VorVpostedVtoVaVpubl 1
iclyVaccessible
website,VinVwholeVorVinVpart.
, SolutionVandVAnswerVGuide:VGarman/Fox,VPersonalVFinanceV14e,VChapterV1:VThinkingVLikeVaVFin
ancialVPlanner
ANSWERSVTOVCHAPTERVCONCEPTVCHECKS
LO1.1VRecognizeVtheVkeysVtoVachievingVfinancialVsuccess.
1. ExplainVtheVfiveVstepsVinVtheVfinancialVplanningVprocess.
Answer:VThereVareVfiveVfundamentalVstepsVtoVtheVpersonalVfinancialVplanningVprocess:V(1)Vevaluat
eVyourVfinancialVhealthVtoVyourVeducationVandVcareerVchoice;V(2)VdefineVyourVfinancialVgoals;V(3)
VdevelopVaVplanVofVactionVtoVachieveVyourVgoals;V(4)VimplementVspendingVandVsavingVplansVtoV
monitorVandVcontrolVprogressVtowardVyourVgoals;VandV(5)VreviewVyourVfinancialVprogressVandVma
keVchangesVasVappropriate.
2. DistinguishVamongVfinancialVsuccess,VfinancialVsecurity,VandVfinancialVhappiness.
Answer:VFinancialVsuccessVisVtheVachievementVofVfinancialVaspirationsVthatVareVdesired,Vplanned,
VorVattempted.VSuccessVisVdefinedVbyVtheVindividualVorVfamilyVthatVseeksVit.VFinancialVsuccessVm
ayVbeVdefinedVasVbeingVableVtoVliveVaccordingVtoVone’sVstandardVofVliving.VFinancialVsecurityVis
VthatVcomfortableVfeelingVthatVyourVfinancialVresourcesVwillVbeVadequateVtoVfulfillVanyVneedsVyou
VhaveVasVwellVasVyourVwants.VFinancialVhappinessVisVtheVexperienceVyouVhaveVwhenVyouVareVs
atisfiedVwithVmoneyVmatters.VPeopleVwhoVareVhappyVaboutVtheirVfinancesVwillVseeVaVspilloverVint
oVpositiveVfeelingsVaboutVlifeVinVgeneral.
3. SummarizeVwhatVyouVwillVaccomplishVstudyingVpersonalVfinance.
Answer:VSeveralVthingsVcanVbeVaccomplishedVbyVstudyingVpersonalVfinance.VRecognizeVhowVtoVm
anageVunexpectedVandVexpectedVfinancialVevents.VPayVasVlittleVasVpossibleVinVincomeVtaxes.VUnde
rstandVhowVtoVeffectivelyVcomparisonVshopVforVvehiclesVandVhomes.VProtectVwhatVweVown.VInvest
Vwisely.VAccumulateVandVprotectVtheVwealthVthatVweVmayVchooseVtoVspendVduringVourVnon-
workingVyearsV(e.g.,Vretirement)VorVdonate.
4. WhatVareVtheVbuildingVblocksVtoVachievingVfinancialVsuccess?
Answer:VTheVbuildingVblocksVforVachievingVfinancialVsuccessVincludeVaVfoundationVofVregularVinc
omeVthatVprovidesVtheVmeansVtoVsupportVyourVlifestyleVandVsaveVforVdesiredVgoalsVinVtheVfuture.
VTheVfoundationVsupportsVaVbaseVofVvariousVbankingVaccounts,VinsuranceVprotection,VandVemploye
eVbenefits.VThenVweVcanVestablishVgoals,VaVrecordkeepingVsystem,VaVbudget,VandVanVemergencyVs
avingsVfund.VWeVwillValsoVmanageVvariousVexpensesVsuchVasVhousing,Vtransportation,Vinsurance,Va
ndVtheVpaymentVofVtaxes.VWeVwillValsoVneedVtoVhandleVcredit,Vsavings,VandVeducationalVcosts.VFi
nally,VweVinvestVinVvariousVinvestmentValternativesVsuchVasVmutualVfunds,Vstocks,VandVbonds,Vofte
nVforVretirement.VAsVaVresultVofVallVtheseVbuildingVblocks,VweVareVmoreVaptVtoVhaveVaVfinanciall
yVsuccessfulVlife.
LO1.2VUnderstandVhowVtheVeconomyVaffectsVyourVpersonalVfinancialVsuccess.
1. SummarizeVtheVphasesVofVtheVbusinessVcycle.
Answer:VTheVbusinessVcycleVentailsVaVwavelikeVpatternVofVrisingVandVfallingVeconomicVactivityVa
sVmeasuredVbyVeconomicVindicatorsVlikeVunemploymentVratesVorVtheVgrossVdomesticVproduct.VThe
VphasesVofVtheVbusinessVcycleVincludeVexpansionV(preferredVstage—
productionVisVhigh,VunemploymentVlow,VinterestVratesVlowVorVfalling,VstockVmarketVandVconsumer
VdemandVhigh),Vpeak,Vcontraction,Vdownturn,Vtrough,VandVrecovery.
2. DescribeVtwoVstatisticsVthatVhelpVpredictVtheVfutureVdirectionVofVtheVeconomy.
Answer:VForecastingVtheVstateVofVtheVeconomyVinvolvesVpredicting,Vestimating,VorVcalculatingVwh
atVwillVhappenVinVadvance.VWeVneedVtoVbeVableVtoVforecastVtheVstateVofVtheVeconomy,Vinflation,
©V2024VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,Vcopied,VorVduplicated,VorVpostedVtoVaVpubl 2
iclyVaccessible
website,VinVwholeVorVinVpart.
, SolutionVandVAnswerVGuide:VGarman/Fox,VPersonalVFinanceV14e,VChapterV1:VThinkingVLikeVaVFin
ancialVPlanner
VandVinterestVratesVsoVthatVweVhaveVadvanceVwarningVofVtheVdirectionsVandVstrengthVofVchangesVi
nVeconomicVtrendsVsinceVtheyVwillVaffectVourVpersonalVfinances.VTwoVstatisticsVweVcouldVwatchVa
reVtheVconsumerVconfidenceVindexV(howVconsumersVfeelVaboutVtheVeconomyVandVtheirVpersonalVfi
nances)VandVtheVindexVofVleadingVeconomicVindicatorsV(compositeVindex,VaveragesVtenVcomponents
VofVeconomicVgrowth).
©V2024VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,Vcopied,VorVduplicated,VorVpostedVtoVaVpubl 3
iclyVaccessible
website,VinVwholeVorVinVpart.
, SolutionVandVAnswerVGuide:VGarman/Fox,VPersonalVFinanceV14e,VChapterV1:VThinkingVLikeVaVFin
ancialVPlanner
3. GiveVanVexampleVofVhowVinflationVaffectsVincomeVandVconsumption.
Answer:VInflationVreducesVtheVpurchasingVpowerVofVtheVdollar.VThisVmeansVthatVourVincomeVwill
VnotVgoVasVfarVand,Vthus,VinVrealVtermsVwillVbeVloweredVbyVinflation.VBecauseVitemsVcostVmore,
VweVwillVhaveVtoVconsumeVlessVandVmayVcutVbackVonVsomeVexpendituresVtoVbeVableVtoVaffordVt
hoseVwithVaVhigherVpriority.
LO1.3VThinkVlikeVanVeconomistVwhenVmakingVfinancialVdecisions.
1. DefineVopportunityVcostVandVgiveVanVexampleVofVhowVopportunityVcostsVmightVaffectVyour
VfinancialVdecisionVmaking.
Answer:VTheVopportunityVcostVofVaVdecisionVisVmeasuredVasVtheVvalueVofVtheVnext-
bestValternativeVthatVmustVbeVforgone.VIfVwe,VforVexample,VputVourVretirementVsavingsVinVaVregul
arVsavingsVaccountVinsteadVofVinVaVtax-
VshelteredVretirementVaccount,VweVmayVbeVforgoingVtheVtaxVbenefitsVassociatedVwithVinvestingVinV
retirementVaccountsVsuchVasVIRAsVorV401(k)Vplans.VInVanotherVexample,VifVweVdecideVtoVborrow
VtheVmaximumVstudentVloanVamountVforVwhichVweVqualifyVtoVliveVaVbitVmoreVcomfortablyVwhile
VinVcollege,VweVwillVnotVbeVableVtoVliveVasVnicely,VsaveVasVmuchVforVtheVdownVpaymentVonVaV
homeVorVsaveVforVretirementVonceVweVgraduateVbecauseVofVtheVhigherVloanVpayments.
2. ExplainVandVgiveVanVexampleVofVhowVmarginalVutilityVandVmarginalVcostVmakeVsom
eVfinancialVdecisionsVeasier.
Answer:VMarginalVanalysisVfocusesVonVtheVnextVincrementVofVusefulnessVorVcostVwhenVmakingVfi
nancialVdecisions.VMarginalVutilityVisVtheVextraVsatisfactionVderivedVfromVhavingVoneVmoreVincre
mentalVunitVofVaVproductVorVservice.VMarginalVcostVisVtheVadditionalVcostVofVthatVunit.VWhenVm
arginalVutilityVexceedsV marginalVcost,VandVweVcompareVtheVtwo,VweVcanVmakeVbetterVfinancialVde
cisions.VAsVanVexample,VifVyouVmustVflyVtoVsomeVdestination,VisVtheVmarginalVcostVofVcheckingV
aVbagVusingVaVcarry-onVworthVtheVmarginalVutility?
3. DescribeVandVgiveVanVexampleVofVhowVyourVmarginalVincomeVtaxVrateVcanVaffectVfinanci
alVdecisionVmaking.
Answer:VAsVourVincomeVrises,VweVwillVfindVourselvesVinVhigherVandVhigherVtaxVbrackets.VOneVt
ypeVofVdecisionVthatVisVaffectedVbyVincomeVtaxesVisVhowVweVshouldVinvestVforVretirement.VWeVm
ightVwantVtoVinvestVthroughVaV401(k)VplanVinsteadVofVkeepingVourVretirementVmoneyVinVaVsaving
sVaccount,VwhichVisVtaxable.
SinceVmostVtypesVofVincomeVareVtaxable,VitVisVimportantVthatVweVunderstandVtheVimpactVofVincom
eVtaxesVonVfinancialVdecisions.VOfVparticularVimportanceVisVtheVmarginalVtaxVrateV(theVtaxVrateVat
VwhichVourVlastVdollarVearnedVisVtaxed).VIfVweVareVinVtheV25VpercentVmarginalVtaxVbracket,VweV
willVgetVtoVkeepV75VpercentV(100VpercentVminusV25Vpercent)VofVourVlastVtaxableVdollarVearned.VIf
VtheVincomeVisVtax-
freeVincome,VonVtheVotherVhand,VweVwouldVgetVtoVkeepV100VpercentVofVit.VTherefore,VitVisVimpor
tantVtoVknowVourVmarginalVtaxVrateVasVwellVasVwhatVtypesVofVincomeVareVsubjectVtoVfederalVinco
meVtaxes.VItVisValsoVimportantVtoVrememberVtheVimpactVofVstateVincomeVtaxesVandVSocialVSecurit
yVtaxes.
LO1.4VPerformVtimeVvalueVofVmoneyVcalculationsVinVpersonalVfinancialVdecisionVmaking.
1. WhatVareVtheVtwoVcommonVquestionsVaboutVmoney?
Answer:VTheVtwoVcommonVquestionsVaboutVmoneyVareVitsVfutureVvalueVandVpresentVvalue.VFutur
eVvalueVisVwhatVinvestmentVorVseriesVofVinvestmentsVwillVbeVatVaVpointVinVtheVfuture.VPresentVv
alueVisVhowVmuchVweVwouldVneedVtoVinvestVtodayVand/orVinVaVseriesVofVfutureVinvestmentsVtoV
provideVsomeVamountVinVtheVfuture.
©V2024VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,Vcopied,VorVduplicated,VorVpostedVtoVaVpubl 4
iclyVaccessible
website,VinVwholeVorVinVpart.
