Question

Tylers mom purchases a savings bond for Tyler.the value of the savings bond increases by 4% each year.one year after it was purchased the value of the savings bond was $156.what is was the value of the savings bond when his mom bought it. the equation and solution

Answer 1

To determine the original price of Tyler's savings bond, divide the year-end value of $156 by 1.04. The initial value was $150.

Step-by-step explanation:

The student is asking how to find the original value of a savings bond if it increased by 4% to $156 after one year. To solve this, we need to calculate the initial value before the 4% increase.

Let's denote the original value as P. After one year, the value increased by 4%, so the equation representing this situation is:

P (1 + 0.04) = $156.

To find P, we divide both sides of the equation by 1.04:

P = $156 / 1.04.

P = $150.

Therefore, the value of the savings bond when Tyler's mom bought it was $150.