Answer:
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
P represents the principal or initial amount invested.
R represents the interest rate.
T represents duration of the investment in years
From the information given,
P = $750
R = 5%
T = y years
I = the total return of Bond 1 - principal
I = 1000 - 750 = $250
Therefore,
250 = (750 × 5 × y)/100
250 = 37.5y
y = 250/37.5
y = 6.7 years
