Question

You invest $1000 in a 5-year savings bond that pays 8% annual interest on the principal. How much total interest will you have earned after 5 years? (Round your answer to the nearest dollar).

Answer 1

8% of 1000 = 80
8% of 1080 = 86.4
8% of 1166.4 = 93.31
8% of 1259.71 = 100.77
8% of 1360.48 = 108.8
$1469.28
Rounded: $1469