QUESTION IMAGE
Question
which scenario is a fixed investment? a certificate of deposit (cd) with a fixed interest rate for a term of 3 years, with the principal repaid at maturity an index fund that tracks a market index and has returns varying with market performance a stock investment with dividends that fluctuate based on the companys annual profits a savings account with a variable interest rate and no fixed term
A fixed - investment is one where the return and terms are relatively stable. A certificate of deposit (CD) with a fixed interest rate for a set term and principal repayment at maturity fits this definition. Index funds, stock investments, and savings accounts with variable interest rates have variable returns based on market performance or other factors.
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A certificate of deposit (CD) with a fixed interest rate for a term of 3 years, with the principal repaid at maturity.