Suppose you have $10,000 to invest and a choice between two investment plans. In each plan, the interest you earn each year is added to the value of the investment.
In Plan A, you earn $500 in interest every year.
In Plan B, you earn 4% of your current investment value every year.
Which plan gives a larger value in year 10? In year 20?
In what year, if any, are the values about the same?