Question

Elena's aunt bought her a $150 savings bond when she was born.When Elena is 20 years old,the will have earnes 105% in interest.How much will the bond be worth when Elena is 20 years old

Answer 1

$3,300

Explanation:

A = Final Investment Vale = ?

P = Principal Amount = $150

r = 105%

t = 20 years

So,

A = P(1 + rt)

A = 150(1 + 1.05 x 20)

A = 150 + 3150

A = $3300

After 20 years the bond will be worth $3300.