Question 1
Suppose you buy a $9000 savings bond that pays 4.75% annual simple interest. When you cash in the bond, you have to pay 16% federal taxes on the interest you earned. How much money would you net if you cash in the bond after six years?
◦ $11,565.60
◦ $10,915.20
◦ $10,440.70
◦ $13,275.30
◦ $11,154.60
Question 2
A savings bond currently worth $7600 collects 5.5% annual simple interest each year. If the bond was purchased seven years ago, how much was it bought for?
◦ $1381.81
◦ $11,780.00
◦ $5487.36
◦ $2673.21
◦ $4903.23