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.


Answer: E

Business

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