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Dafna11 [192]
3 years ago
15

Tyler's mom purchased a savings bond for Tyler. The value of the savings bond increases by 4% each year. One year after it was p

urchased, the value of the savings bond was $156. Find the value of the bond when Tyler's mom purchased it. Explain your reasoning (plz hurry)
Mathematics
1 answer:
Gemiola [76]3 years ago
8 0

Answer:

The value of the bond when Tyler's mom purchased it was $150

Step-by-step explanation:

we know that

In this problem we have a exponential function of the form

f(x)=a(b)^{x}

where

a is the initial value (y-intercept)

b is the base

r is the rate

b=(1+r)

In this problem

r=4%=4/100=0.04

b=1+0.04=1.04

substitute

f(x)=a(1.04)^{x}

where

x is the number of years since the savings bond was purchased

f(x) is the value of the savings bond

For x=1

f(x)=$156

substitute

156=a(1.04)^{1}

Solve for a

156=a(1.04)

a=\$150

therefore

The value of the bond when Tyler's mom purchased it was $150

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