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
A) $10,400.
B) $12,625.
C) $12,763.
D) $12,167.
D) $12,167.
Accumulation = BT$ (1 + R)n, $12,167 = $10,000 (1 + .04)5
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