Final answer:
In order to determine the outcome or result of the investment, you would need to know `` A) The interest rate and B) The time period of the investment``
The answer is option ⇒D) Both A and B
Step-by-step explanation:
To determine the outcome or result of an investment, you would need to know two key factors:
- A) The interest rate: The interest rate is the percentage at which your investment will grow over time. It represents the return or earnings you will receive on your investment. The higher the interest rate, the greater the potential for growth and profit.
- B) The time period of the investment: The time period refers to the duration for which you will hold the investment. It can range from short-term (a few months) to long-term (several years). The longer you hold the investment, the more time it has to grow and potentially generate higher returns.
By knowing both the interest rate and the time period of the investment, you can calculate the potential outcome or result. For example, if you have an interest rate of 5% and invest for 5 years, you can calculate the future value of your investment using formulas like compound interest or present value calculations.
In summary, to determine the outcome or result of an investment, it is crucial to know the interest rate and the time period of the investment. These factors play a significant role in evaluating the growth and potential returns on your investment.
The answer is option ⇒D) Both A and B