Oscar Wright of Carson City, Nevada, while

combing through his great-grandmothers trunk of

remembrances, found a State of Nevada Bond that was issued the day Nevada became the 36

th

state on October 31, 1864. This State of Nevada bond has a face value of $100 and a stated

interest rate of 22%. Why do you think the interest rate is so high? If the State of Nevada agrees

to pay Oscar the face value of this bond plus interest through October 31 of last year, how much

will he receive?