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Rich, an individual investor, lives in a land of no taxation and receive a $10,000 bonus. He invests this amount in a bond that pays
Rich, an individual investor, lives in a land of no taxation and receive a $10,000 bonus. He invests this amount in a bond that pays interest of 4% per year and holds the bond for 5 years, reinvesting the interest annually at the same 4% return. At the end of 5 years the $10,000 original investment accumulates to
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$12,763.
$10,400.
$12,167.
$12,625.
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