Question

Elena's aunt bought her a $150 savings bond when she was born. When Alayna is 20 years old the bond will have earned 105% interest how much will the bond be worth when Elena 20 years old?

Answer 1

$307.5

Explanation:

We have been given that Elena's aunt bought her a $150 savings bond when she was born. When Elena is 20 years old the bond will have earned 105% interest.

The bond's value after 20 years will be 150 plus 105% of 150.

`\text{Bond's value when Elena will be 20 years old}=150+((105)/(100)*150)`

`\text{Bond's value when Elena will be 20 years old}=150+(1.05*150)`

`\text{Bond's value when Elena will be 20 years old}=150+157.5`

`\text{Bond's value when Elena will be 20 years old}=307.5`

Therefore, bond will be worth $307.5 when Elena will be 20 years old.