HELP ME PLEASE!!Dominic invested $19,000 in an account paying an interest rate of 6.1% compounded monthly. Assuming no deposits
1 answer:
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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