Money is invested in a savings bonds with a 6.5% interest. After 1 year the bonds are worth $736.70. How much?
by admin ~ August 8th, 2006 . Filed under: Personal Finance .
twilliam4055 asked:
Money is invested in a savings bonds with a 6.5% interest. After 1 year the bonds are worth $736.70. How much was invested?
Elizabeth Wright
Money is invested in a savings bonds with a 6.5% interest. After 1 year the bonds are worth $736.70. How much was invested?
Elizabeth Wright
August 9th, 2006 at 11:10 am
To start, look at the formula for savings growth.
Principal Amount * (1 + Rate) = Savings
Therefore,
Principal Amount * (1 + .065) = 736.70
Principal Amount = (736.70) / (1.065)
Principal Amount = 691.73
August 10th, 2006 at 7:50 am
1st of all I would love to know what bonds are paying 6.5%…EE bonds are paying 3.4% and I bonds are only paying 3.74%…
But the formula to figure out your problem is:
6.5%*X=$736.70
So: $691.74