If You Want $1,000 Three Years from Now and You

question 51

Multiple Choice

If you want $1,000 three years from now and you earn 4 percent on your savings, how much do you need to deposit?

• A)$885
• B)$889
• C)$1,000
• D)$1,030
• E)$1,040

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Definitions:

Variables

Elements, features, or factors that are likely to vary or change.

Economists

Professionals who study how societies use available resources to produce valuable commodities and distribute them among different people.

Normative Statement

Describes expressions of what ought to be rather than what is, often reflecting opinions or prescriptions for policy rather than objective statements.

Legal Age

The age at which an individual is recognized by law as an adult and capable of accepting responsibility for actions.