When an Investment Pays Only Simple Interest, This Means

question 67

Multiple Choice

When an investment pays only simple interest, this means:

• A) the interest rate is lower than on comparable investments.
• B) the future value of the investment will be low.
• C) the earned interest is nontaxable to the investor.
• D)interest is earned only on the original investment.

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Definitions:

Problems

Challenges, obstacles, or issues that need to be resolved or dealt with, which can arise in various contexts such as personal life, work, education, or technology.

Competitive Advantage

The favorable position an organization seeks in order to be more successful than its competitors, often through unique resources, capabilities, or strategies.

Leader

A person who influences a group towards the achievement of a goal by guiding, directing, inspiring, and motivating members.

Short-sighted

lacking foresight or perspective; making decisions based on immediate rather than long-term outcomes.