While banks usually pay compound interest

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While banks usually pay compound interest, bonds usually pay simple interest.

1. Suppose you invest $1500 in a savings bond that pays 10% simple interest per year. How much total interest will you receive in 5 years?

2. If the interest for the same bond were compounded yearly, how much interest would you receive over the 5 year time period?

Reference no: EM133436537

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