SOLUTION: On November 25, 2011, you could buy a 30 year U.S. Treasury bond for $10,000 that pays 4.25% simple interest every year through November 25,2041. How much total interest would it e

SOLUTION: On November 25, 2011, you could buy a 30 year U.S. Treasury bond for $10,000 that pays 4.25% simple interest every year through November 25,2041. How much total interest would it e

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Question 1075012: On November 25, 2011, you could buy a 30 year U.S. Treasury bond for $10,000 that pays 4.25% simple interest every year through November 25,2041. How much total interest would it earn by then?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po(1+0.0425)^30
=10000(1.0425)^30
=$34,856.35
It would earn $24,856.35 of interest.
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