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.

---

Definitions:

Income Tax

A tax levied by a government directly on individuals' or organizations' income.

Percentage Calculation

Percentage calculation involves determining the part of a whole in terms of 100, used in various financial and statistical contexts to express proportions.

Percentage Calculation

The mathematical process of determining the percentage amount or the percentage change between two numbers.

Percentage Calculation

The mathematical process of finding a portion of a number, represented as a fraction of 100.