Question

Elena’s aunt bought her a $150 savings bond when she was born. When Elena is 20 years old, the bond will have earned interest and increased by 105%. How much will the bond be worth when Elena is 20 years old?

Answer 1

Here, Elena's aunt bought her a $150 savings bond when she was born.

That is, the initial amount = $150

And, When Elena is 20 year old, the bond will have earned 105% in interest.

Therefore, The bond be worth when Elena is 20 years old,

⇒A= $307.5

Therefore, after 20 years the the bond worth $307.5

Answer 2

307.5$

Explanation:

150$. 105% of it added.

Since 105% is 1.05, multiply the percentage by the cost to get the money added.

150*1.05=157.5

Then ADD it to the price/savings.

150+157.5=307.5$