Question

Tyler's mom purchased 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. Find the value of the bond when Tyler's mom purchased it. Explain your reasoning.

Answer 1

$150

Step-by-step explanation:

156 - 4% = 149.76

149.75 rounded equals 150

Answer 2

The value of the bond when Tyler's mom purchased it is $150.

Solution:

The value of the savings bond after 1 year = $156

The value of the savings bond increased each year = 4%

To find the value of the bond when Tyler's mom purchased it.

Let x be the cost price when it was purchased.

Cost price when it was purchased + increased percentage = new price

⇒ x + 4% of x = 156

To convert percentage to fraction, divide by 100.

`$x+(4)/(100)* x=156`

Do cross multiplication to make the denominator same.

`$(100x)/(100)+(4x)/(100)=156`

`$(100x+4x)/(100)=156`

`$(104x)/(100)=156`

Do cross multiplication.

`104x=156*100`

`104x=15600`

Divide by 104 on both sides, we get

x = 150

Hence the value of the bond when Tyler's mom purchased it is $150.