Rich,an Individual Investor,lives in a Land of No Taxation and Receive

question 4

Multiple Choice

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.

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Definitions:

Indirect Tax

A tax collected by an intermediary (such as a retailer) from the person who bears the ultimate economic burden of the tax (such as the consumer).

Stamp Distributers

Individuals or entities tasked with distributing stamps, often in historical contexts related to taxes or postal services, such as the Stamp Act of 1765 which imposed a direct tax by the British Parliament on the colonies.

Grenville

Richard Grenville was a British naval commander and explorer remembered for his role in the early English attempts at colonizing Roanoke Island in present-day North Carolina.

Military Force

Military force is the combined armed services of a nation, including its army, navy, air force, and other armed services, used for defense or in combat operations.