What is the main difference between investing and saving?

select the best answer from the choices provided.

a.)investing has a better annual rate of return than saving.

b.) investing has the risk of losing principal, whereas saving does not.

c.) invested money earns interest, whereas saved money does not.

d.)invested money is insured by the fdic, whereas saved money is not.

B.) Investing has the risk of losing principal, whereas saving does not.

Step-by-step explanation:

Saving can be accomplished a number of ways, including putting the money in a cookie jar (where it will not earn interest). Most savings institutions (banks, credit unions, and the like) are governed by rules that help to ensure the availability and safety of the balance. Often, such institutions are insured so that depositors are protected against loss of principal.

Many investment opportunities are governed by no such rules. The invested amount may be unavailable for perhaps a lengthy period of time, and any return on the investment may be dependent upon factors not under the control of the party accepting the money. There is the opportunity for complete loss of the invested amount, and the possibility of incurring additional liability in some cases.

Investment in certificates that are traded on a regulated exchange will be subject to the exchange rules, generally including the requirement that the investor be fully informed of the risks. That doesn't mean there is no risk—it just means the investor is supposed to be made aware of it.

the answer is 200

step-by-step explanation:

the way the question is worded, it seems to imply the $264 interest is simple interest, not compound interest.

the simple interest for 2 years is $264; the simple interest for 1 year is $132.

$132 interest on a $600 investment means an interest rate of (132/600)*100 = 22%.

the value of $200 at 22% interest compounded annually for three years is

200%281.22%29%5e3

the amount of interest is that value, minus the original $200.

step-by-step explanation:

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