Question

I need help with this Tyler’s mom purchased a saving 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 $156.00 find the value of the bond when Tyler’s mom purchased it. Explain your reason

Answer 1

Let x = value of the bond when Tyler’s mom purchased it.

After one year, this value increased by 4%. This new value is calculated as follows:

`\text{new value = }x\cdot1.04`

The new value is $156.00, then

`\begin{gathered} 156.00=x\cdot1.04 \\ (156.00)/(1.04)=x \\ 150.00=x \end{gathered}`

The value of the bond was $150.00 when Tyler’s mom purchased