Question

Elenas anut bought her a 150$ saving bond when she was born. When elena is 18 years old, the bond will have earned a 106% in interest. How much will the bond be worth when elena is 18 years old

Answer 1

Answer:

The Amount after 18 years is $66,942,391.5

Step-by-step explanation:

Given as :

The principal invested in saving bond = p = $150

The Time period for the bond = t = 18 years

The rate of interest applied on bond = 106%

Let The Amount after 18 years = $A

Now, From compound interest

Amount = Principal × $(1+\dfrac{\textrm rate}{100})^{\textrm time}$

Or, A = p × $(1+\dfrac{\textrm r}{100})^{\textrm t}$

Or, A = $150 × $(1+\dfrac{\textrm 106}{100})^{\textrm 18}$

Or, A = $150 × $(2.06)^{\textrm 18}$

Or, A = $150 × 446,282.61

∴ A = $66,942,391.5

So,The Amount after 18 years = A = $66,942,391.5

Hence,The Amount after 18 years is $66,942,391.5 Answer