How much should you invest now at 7 1/4% simple annual interest in order to earn $190 interest in 4 months?

so principal amount is $7862.07

Step-by-step explanation:

Given data

rate = 7*1/4 % = 29/4 %

interest = $190

time = 4 months = 4/12 year

to find out

principal

solution

we know the simple interest formula i. e.

interest = (principal * rate * time) / 100 ... 1

now put all value rate time and interest in equation 1 we get interest here

interest = (principal * rate * time) / 100

190 = (principal * 29/4 * 4/12) / 100

principal = 190 * 12 * 100 / 29

principal = 7862.068966

so principal amount is $7862.07