Question
In April 1868, an entrepreneur issued $1000 bonds (to pay for an access road in a city). The bonds carried a 6% annual interest rate
In April 1868, an entrepreneur issued $1000 bonds (to pay for an access road in a city). The bonds carried a 6% annual interest rate payable semiannually. The entrepreneur paid the interest until April 1879, at which time the city assumed responsibility for the bonds (and the road they financed). (a) The first of these bonds matured in April 2007. At that time, how much interest had the city paid on this bond? (b) Another of these bonds will not mature until April 2151 At that time, how much interest will the city have paid on this bond? What did the city pay on the bond that matured in April 2007?
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