Final answer:
To earn $700 in simple interest in 1 1/2 years at a rate of 4%, you would have to deposit approximately $11,666.67 as principal.
Step-by-step explanation:
To find the principal needed to earn $700 in simple interest, we can use the formula: Interest = Principal × Rate × Time. In this case, the interest is $700, the rate is 4%, and the time is 1 1/2 years. Let's plug in the values and solve for the principal:
$700 = Principal × 0.04 × 1.5
Multiplying the rate and time gives us $700 = Principal × 0.06
Dividing both sides of the equation by 0.06, we get:
Principal = $700 / 0.06
Principal ≈ $11,666.67
Therefore, you would have to deposit approximately $11,666.67 as principal to earn $700 in simple interest in 1 1/2 years at a rate of 4%.