Consider Suppose your city is building a new park, and issues bonds to raise the money to build it. You obtain a $1000 bond that pays 3% interest annually and matures in 5 years. How much will the bond be worth in 5 years? What is the appropriate formula to use to solve this problem? Simple One-time Interest A = P*(1+r) Simple Interest over Time A = Po*(1+rt) Compound Interest PN = P*(1+) N Annuity Formula PN = Loans Formula Po (E) d* (1 (1+ ) ~ ~k) (E)