Tyler's mom purchased a savings bond for Tyler. The value of the savings bond increases by 4% each year. One year after it was purchased, the value of the savings bond was $156. Find the value of the bond when Tyler's mom purchased it. Do not include units ($) in your answer.
Since the value of the bond increases by 4% each year and only 1 year passed by then the ROI is not compounded and we only need to find the value before the 4% was implemented. In order to add 4% to a value we would multiply that value by 1.04 which increases that value by 4%. So, to find the value before the interest was added we would need to divide the new value by 1.04 instead.
$156 / 1.04 = $150
Finally, we can see that the value of the bond when Tyler's mom purchased it was 150
