Ben Invests $10,000 at a Rate of Interest of 5

question 87

Multiple Choice

Ben invests $10,000 at a rate of interest of 5 percent for 40 years. Which of the following statements about the return on the investment is true?

• A) Ben will receive more money at the end of 30 years compared to the money received at the end of 40 years.
• B) Ben will receive more money at a 3 percent rate of interest instead of the existing rate.
• C) Ben will receive interest of $5,000 at the end of 10 years.
• D) Ben will receive no interest on his investment at the end of the investment period.
• E) Ben will receive a significant amount at the end of the investment period, due to the feature of compounding.

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Definitions:

Restrictive

A term describing clauses, rules, or adjectives that limit or define the entities they refer to more narrowly.

Nonrestrictive

A term or clause that provides additional information without limiting or defining the subject in question, and is often set off by commas.

Connective

In logic and linguistics, a term for words or phrases that link propositions and sentences together to form coherent text.

Predicate

The part of a sentence or clause that tells something about the subject, often relating to an action or attribute.