vickyburt3
Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Trevor has an investment worth $6,774.50. He made his only deposit in it 22 years ago. Given that the investment yields 2.7% simple interest annually, how big was the initial deposit?

a. $2,524.50
b. $4,024.03
c. $4,250.00
d. $11,404.88

Sagot :

jesusm1

Answer:

First, converting R percent to r a decimal

  • r = R/100 = 2.7%/100 = 0.027 per year.

Solving our equation:

  • P = 6774.5 / ( 1 + (0.027 × 22)) = 4250
  • P = $4,250.00

  • The principal investment required to get a total amount, principal plus interest, of $6,774.50 from simple interest at a rate of 2.7% per year for 22 years is $4,250.00
  • I do exams and quizzes if your interested!

The initial deposit amount is $4,250.00.

Given that,

  • The worth of an investment is $6774.50
  • The time period is 22 years.
  • The rate of interest is 2.7%.

Based on the above information, the calculation is as follows:

We know that

[tex]SI =P\times R\times T\\\\SI = P\times 2.7\% \times 22\\\\SI = 0.594P[/tex]

Now

Investment worth = P  + SI

= P + 0.594P

= 1.594P  

So,  

1.594P  = 6774.50

P  = $4,250  

Therefore we can conclude that the initial deposit amount is $4,250.00.

Learn more: brainly.com/question/13324776

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.