You Invest $1,000 in an Account Paying 5% Simple Interest

Multiple Choice

You invest $1,000 in an account paying 5% simple interest. You do not add nor withdraw any funds from this account. Every year, your account balance will:

A) Remain constant.
B) Increase at an increasing rate.
C) Increase at a constant rate.
D) Increase at a decreasing rate.
E) Increase by a constant amount.