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:
[tex]\text{new value = }x\cdot1.04[/tex]The new value is $156.00, then
[tex]\begin{gathered} 156.00=x\cdot1.04 \\ \frac{156.00}{1.04}=x \\ 150.00=x \end{gathered}[/tex]The value of the bond was $150.00 when Tyler’s mom purchased
