How Much Money Would You Have to Put into a Savings

question 363

Multiple Choice

How much money would you have to put into a savings account today to be worth $500 three years from now at a market rate of interest equal to 8 percent?

• A) $397
• B) $351
• C) $420
• D) $459

---

Definitions:

Generate-and-test

A problem-solving strategy that involves generating potential solutions and testing their effectiveness.

Heuristic

is a simple, efficient rule or method used to make decisions or solve problems, based on practical judgement rather than comprehensive logical analysis.

Critical Thinking

The disciplined process of actively and skilfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.

Deliberative Thinking

The process of carefully considering and rationalizing thoughts and options before making a decision or forming a judgment.