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

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)

Explanation: