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=P0(1+r) Simple Interest over Time A=P0(1+rt) Compound Interest PN=P0(1+kr)Nk Annuity Formula PN=(k)d((1+kf)Nk1) Loans Formula P0=(k)d(1(1+kf)Nk)