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 you earn?
1700 * .05 * 9 = ____
Well, well, well, looks like you're in for some number crunching! So, let's go ahead and do it. We've got ourselves a $1700 bond with a 5% interest rate. Now, since the bond matures in 9 years, we'll have to multiply the principal by the interest rate and the number of years.
1700 * 0.05 * 9 = $765
Voila! You'll earn $765 in interest over the course of those 9 years. Quite the lucrative investment, if you ask me! Just make sure to resist the urge to spend it all on balloon animals.
To calculate the interest earned on the bond, we can use the simple interest formula:
Interest = Principal × Rate × Time
In this case:
Principal = $1700
Rate = 5% or 0.05 (convert it from percentage to decimal)
Time = 9 years
Substituting these values into the formula, we get:
Interest = $1700 × 0.05 × 9
Calculating this expression:
Interest = $765
So, you will earn $765 in interest over the 9-year duration of the bond.
To calculate the interest earned on a bond, you need to know the principal amount (the initial investment), the interest rate, and the time period.
In this case, the principal amount is $1700, the interest rate is 5%, and the time period is 9 years. To calculate the interest earned, you can use the formula:
Interest = Principal Amount * Interest Rate * Time Period
Substituting the values, we get:
Interest = $1700 * 5% * 9 years
To calculate the interest, we first convert the percentage to a decimal by dividing by 100:
Interest = $1700 * 0.05 * 9 years
Now, we can simplify the equation:
Interest = $765
Therefore, you will earn $765 in interest over the 9-year period.