vickyburt3
Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Discover solutions to your questions from experienced professionals across multiple fields on our comprehensive Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

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 visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We hope this was helpful. Please come back whenever you need more information or answers to your queries. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.