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. \(\$6,154\)
Answer: E
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Last year a certain bond with a face value of \(\$5,000\) yielded \(8\) percent of its face value in interest. If that
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Solution:M7MBA wrote: ↑Thu Oct 29, 2020 12:22 pmLast 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. \(\$6,154\)
Answer: E
Eight percent of $5,000 is 5000 x 0.08 = $400, and $400 is 6.5 percent of 400/0.065 = $6,513.84, or approximately $6,514.
Answer: E
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