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Required information

Treasury securities are issued and backed by the U$.$S$.$ government and, therefore, are considered to be the lowest$-$risk

securities on the market. As an investor looking for protection against inflation, you are considering the purchase of

inflation$-$adjusted bonds known as U$.$S$.$ Treasury Inflation$-$Protected Securities $($TIPS$).$ With these securities$,$ the face value

$($which is paid at maturity$)$ and the bond interest rate $($which is paid semiannually$)$ is regularly adjusted to account for

inflation. However, for this problem only, assume the semi$-$annual interest payment $($called the bond dividend$)$ remains the

same.

You purchased a $10-$year $$10,000$ TIPS bond with dividend of $4\%$ per year payable semiannually $($i$.$e$.,$ $$200$ every $6$

months$).$ Assume there is no inflation adjustment for the first $5$ years, but in years $6$ through $10,$ the bond face value

increases by $$750$ each year. You use an expected investment return of $10\%$ per year compounded semiannually.

NOTE: This is a multi$-$part question. Once an answer is submitted, you will be unable to return to this part.

What will be the equivalent future worth of the total money received with dividend reinvestment included?

The future worth of all the income received would be $