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Vignette #2 Sue and her friends are having lunch in the school cafeteria. Sue is drinking bottled water, Joe is drinking Gatorade, Ben has a soft drink, Marsha is sipping iced tea, and Tom is drinking vitamin-enhanced water. Tom thinks he is drinking the best beverage of all because it has vitamins, minerals, amino acids, and some herbs in it. Marsha is counting on the caffeine to keep her alert during her English class and Sue thinks she made the best choice. Ben really doesn't think much about what he drinks at all. Let's answer these questions and learn more about these beverages. Which statement about enhanced waters is correct?
Rate of Return
The profit or deficit from an investment during a certain timeframe, represented as a portion of the investment's starting price in percentage terms.
Simple Interest
A financial term referring to a method of calculating the interest charge on a loan or investment based on the original principal amount, the interest rate, and the time the loan or investment is made for.
Guaranteed Investment Certificate
A secure investment that guarantees to return the principal plus interest at a specified rate over a fixed period.
Annual Interest Rate
The percentage of principal that is paid as interest to the lender annually, not accounting for the compound interest within that year.
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