# In an episode of the Andy Griffith Show, Mayberry resident Frank Myers almost lost his home to taxes owed. Luckily, Sheriff Andy Taylor found an old town bond that belonged to Frank. The bond's original value was \$100 paying 8.5% interest compounded annually and was 100 years old. Determine the amount the town of Mayberry now owed Frank on this bond.

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## what is

100(1.085)^100 ??

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## To determine the amount the town of Mayberry owed Frank on the bond, we need to calculate the compounded value of the bond after 100 years.

The formula to calculate the future value (FV) of an investment with compound interest is:

FV = PV * (1 + r)^n

Where:
FV is the future value
PV is the present value (original value of the bond)
r is the interest rate (in decimal form)
n is the number of periods (or years in this case)

In this case, the present value (PV) of the bond is \$100, the interest rate (r) is 8.5% or 0.085 (in decimal form), and the number of periods (n) is 100 years.

Let's calculate the future value:

FV = \$100 * (1 + 0.085)^100

To calculate this, you can use a calculator or a spreadsheet software like Microsoft Excel or Google Sheets.

The future value of the bond would be the amount the town of Mayberry owes Frank after 100 years.