Kendall Is Investing $3,333 Today at 3 Percent Annual Interest

question 10

Multiple Choice

Kendall is investing $3,333 today at 3 percent annual interest for three years.Which one of the following will increase the future value of that amount?

• A)Shortening the investment time period
• B)Paying interest only on the principal amount
• C)Paying simple interest rather than compound interest
• D)Paying interest only at the end of the investment period rather than throughout the investment period
• E)Increasing the interest rate

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Definitions:

Life Chances

The opportunities individual has for achieving economic prosperity, based on various socio-economic factors, including class background and access to education.

Commodity Markets

Markets where raw or primary products are exchanged, typically involving the trading of goods like grains, gold, meat, oil, and natural resources.

Similar Goods

Products or services that fulfill similar needs or desires among consumers, often considered interchangeable or substitutes for one another.

Power

The ability or capacity to influence or control the behavior of others or the course of events.