Respuesta :
Answer:
E. $6,154
Step-by-step explanation:
Let x represent selling price of the bond.
We have been given that last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest.
Let us calculate 8% of $5,000 to find amount of interest as:
[tex]\text{Amount of interest }=\$5,000\times \frac{8}{100}[/tex]
[tex]\text{Amount of interest }=\$50\times 8[/tex]
[tex]\text{Amount of interest }=\$400[/tex]
We are also told that the amount of interest was approximately 6.5 percent of the bond's selling price. 6.5 percent of the bond's selling price would be [tex]\frac{6.5}{100}x[/tex].
We can represent our given information in an equation as:
[tex]\frac{6.5}{100}x=\$400[/tex]
[tex]100*\frac{6.5}{100}x=\$400*100[/tex]
[tex]6.5x=\$40,000[/tex]
[tex]\frac{6.5x}{6.5}=\frac{\$40,000}{6.5}[/tex]
[tex]x=\$6,153.846153846[/tex]
[tex]x\approx \$6,154[/tex]
Therefore, the selling price of the bond was approximately $6,154 and option E is the correct choice.
