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how do you work out the Original value of something (e.g. 2 years ago ed put some money into a fixed term bond, which paid 10 percent interest each year for the duration of the bond. The bond has now matured and ed can withdraw his money. The value of the bond on maturity is 6050 pounds. How much did ed originally invest?)

 Sep 15, 2014

Best Answer 

 #1
avatar+118654 
+5

FV=P(1+r)^n

6050=P(1+0.1)^2

solve for P

 Sep 16, 2014
 #1
avatar+118654 
+5
Best Answer

FV=P(1+r)^n

6050=P(1+0.1)^2

solve for P

Melody Sep 16, 2014

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