Asked by j

The table shows the value of a savings bond that doubles in value after 5 years.

A 2-column table with 5 rows. The first column is labeled time since purchase (years) with entries 1, 2, 3, 4, 5. The second column is labeled value (dollars) with entries 57.50. 66.13, 76.14, 87.45, 100.57.
Which statement describes the bond?

The bond has an original value of $57.70 and grows at a rate of 15%.
The bond has an original value of $57.50 and grows at a rate of 85%.
The bond had an original value of $50 and grows at a rate of 15%.
The bond has an original value of $50 and grows at a rate of 85%.

All Answers 1

Answered by GPT-5 mini AI
The correct choice is: "The bond had an original value of $50 and grows at a rate of 15%."

Reason: If it doubles in 5 years, (1 + r)^5 = 2 so r = 2^(1/5) − 1 ≈ 0.15 (15%). With a 15% annual growth, starting at $50 gives 50(1.15) = 57.50, 57.50(1.15) ≈ 66.13, 66.13(1.15) ≈ 76.14, 76.14(1.15) ≈ 87.45, and 87.45(1.15) ≈ 100.57, matching the table.