Question

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 Please select the best answer from the choices provided A B C D.

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\dotfill & \$6774.50\\ P=\textit{original amount deposited}\\ r=rate\to 2.7\%\to (2.7)/(100)\dotfill &0.027\\ t=years\dotfill &22 \end{cases} \\\\\\ 6774.50=P[1+(0.027)(22)]\implies \cfrac{6774.50}{1+(0.027)(22)}=P\implies 4250=P`