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Sauron [17]
3 years ago
5

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 $156. Find the value of the bond when Tyler's mom purchased it. Do not include units ($) in your answer.
Mathematics
1 answer:
Alla [95]3 years ago
6 0

Answer:

150

Step-by-step explanation:

Since the value of the bond increases by 4% each year and only 1 year passed by then the ROI is not compounded and we only need to find the value before the 4% was implemented. In order to add 4% to a value we would multiply that value by 1.04 which increases that value by 4%. So, to find the value before the interest was added we would need to divide the new value by 1.04 instead.

$156 / 1.04 = $150

Finally, we can see that the value of the bond when Tyler's mom purchased it was 150

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