GeminiHeat wrote:
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?
A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest8% of $5,000 =
$400 So, interest =
$400 If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?Let x = the bond's selling price
So,
$400 = 6.5% of x
In other words:
$400 = 0.065x
Solve: x = 400/0.065 ≈ 6154
Answer: E