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?

With simple interest, the total value is A = P(1 + rt), where P is the initial deposit. Here, 1 + rt = 1 + (0.027)(22) = 1.594, so P = $6,774.50 ÷ 1.594 = $4,250.00. The initial deposit was $4,250.00, choice C.

AI-written and checked against the verified answer.