For each of the following pairs, which bond wouldyou expect to pay a higher interest rate? Explain.a. a bond of the U.S. government or a bond of anEastern European governmentb. a bond that repays the principal in year 2020 or abond that repays the principal in year 2040c. a bond from Coca-Cola or a bond from a softwarecompany you run in your garaged. a bond issued by the federal government or abond issued by New York State

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A: Total Savings in the bank during retirement is $1000000Total savings this year is $5000The increment…

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Q: Please show work

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A: Given, Future amount, F= $15, 000 interest rate, i= 10% time period, n= 5 years

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A:

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A: Return on investment can be calculated as follows.

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