Question

The city is issuing bonds to raise money for a building project. You obtain a $1700 bond that pays 5% interest annually that matures in 9 years. How much interest will your earn?

Answer 1

Answer:

I=P0r  

A=P0+I=P0+P0r=P0(1+r)  

I  is the interest

A  is the end amount: principal plus interest

P0  is the principle (starting amount)

r  is the interest rate (in decimal form. Example: 5%=0.05)

Step-by-step explanation: