Question

The local school district you live in selling bonds for $2000 that pays 5% interest annually that matures in 10

years. How much interest will you earn?
O $2000
O $500
O $750
O $1000

Answer 1

$1000

Explanation:

5% = 1 year

50% = 10 years

50% = 0.5

Take 2000 times 0.5 = $1000

So, you will earn $1000 interest in 10 years