Answer :
Final answer:
To earn [tex]$130 interest in 6 months at a simple annual interest rate of 7 1/4%, you should invest approximately $[/tex]910.96 now.
Explanation:
To calculate the amount to invest now to earn [tex]$130 interest in 6 months at a simple annual interest rate of 7 1/4%, you can use the formula:
Interest = Principal x Rate x Time
Given: Interest = $[/tex]130, Time = 0.5 years, and Rate = 7.25%
Substitute the values into the formula and solve for Principal.
In this case, the amount to invest now would be approximately [tex]$910.96 to earn $[/tex]130 in interest over 6 months.
Learn more about Calculating present value of investment with simple interest here:
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