In July ​1868, an entrepreneur issued ​$1000 bonds​ (to pay for an access road in a​ city). The bonds carried an 8​% annual interest rate payable semiannually. The entrepreneur paid the interest until July 1897​, at which time the city assumed responsibility for the bonds​ (and the road they​ financed). ​(a) The first of these bonds matured in July 2004. At that​ time, how much interest had the city paid on this​ bond? ​(b) Another of these bonds will not mature until July 2132​! At that​ time, how much interest will the city have paid on this​ bond?

Q&A Education