Question

Taylor's mom purchased a savings bond for Taylor. The value of the savings bond increases by 8% each year. One year after it was purchased, the value of the savings bond was $243. Find the value of the bond when Taylor's mom purchased it.

Answer 1

Answer: $225

Explanation:

Let the value of the bond at the purchase price be x.

Based on the information in the question, the equation to solve the question will be:

x + (8% × x) = $243

x + (8/100 × x) = $243

x + 0.08x = $243

1.08x = $243

x = $243/1.08

x = $225

Taylor's mom purchased the bond at $225