Chaz wishes to have $1,000 in an account paying 7% simple interest per year in 2.5 years. How much must he invest today to have the desired funds in 2.5 years?

$851.06

Explanation:

The computation of the principal is shown below:

As we know that

Amount = Principle + Simple interest

Amount = Principle + (Principle × Rate × time)

So,

Principal = Amount ÷ 1 + Rate  × time

               = $1,000 ÷ (1 + 0.07 × 2.5)

              = $1,000 ÷ 1.175

              = $851.06

We applied the amount and the simple interest formula

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; (a) calling people who have not shown interest in the product and asking them to buy it;