If I Invest $1,000 in a Financial Instrument That Pays

question 61

Multiple Choice

If I invest $1,000 in a financial instrument that pays 10% simple interest payable at the end of each year, I will

• A)not receive any interest for the first year.
• B)receive the same amount of interest each year.
• C)receive interest only for the first year.
• D)receive less interest in year ten than in year two.
• E)receive interest on both the principal and first year's interest in year two.

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