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You invest $100 into a CD (certificate of deposit) for one year and receive $108 at the end of the year. Which of the following
You invest $100 into a CD (certificate of deposit) for one year and receive $108 at the end of the year. Which of the following is false? Answer the $100 of the CD at maturity is considered a "return of your original investment". the $8 paid at the maturity is considered your "return on your original investment". you must pay tax on the return "ON" investment only. You are taxed on the entire cash flow when paid upon the CD's maturity
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