Answer:
$3,000
Step-by-step explanation:
There two possible outcomes:
There is a 3/4 chance that the bid is rejected for a value of -$1,400
There is a 1/4 chance that the bid is accepted for a value of $17,600 - $1,400.
The expected value of the situation is:
The expected value is $3,000.
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
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
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
Solve for a
therefore
The value of the bond when Tyler's mom purchased it was $150