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Anvisha [2.4K]
3 years ago
5

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% s

imple interest annually, how big was the initial deposit? a. $2,524. 50 b. $4,024. 03 c. $4,250. 00 d. $11,404. 88.
SAT
1 answer:
Setler [38]3 years ago
8 0

Answer:

Explanation:

Given :  Trevor has an investment worth $6,774.50. He made his only deposit in it 22 years ago. investment yields 2.7% simple interest annually,

To Find :  how big was the initial deposit

Solution:

Let say investment in  initial deposit = P  $

Rate of interest  R  = 2.7 %  annually

Time = 22  Years

Simple interest = SI

SI = P * R & T /100

=> SI  = P * 2.7 * 22 /100

=> SI  = 0.594P  $

Investment worth = P  + SI

= P + 0.594P

= 1.594P  $

1.594P  = 6774.50

=> P  = 4250  $

initial deposit = 4250  $

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