Sven is choosing between an annual $1,000 bonus from his employer to be invested at 8% over 20 years or an annual $1,000 RPP from his employer also to be invested at 8% over 20 years. Which of the following statements is accurate? (Sven's tax rate will remain constant at 45% and all funds will be treated as ordinary annuities.) (Round intermediate calculations to nearest whole dollar.)

Multiple Choice

• Sven's accumulated funds will be the same regardless of which option he chooses.

• If Sven chooses the RPP, the funds will compound at a rate of 4.4%.

• Sven's accumulated funds will be greater if he selects the RPP.

• Sven's accumulated funds will be greater if he selects the bonus.