Final answer:
To earn $700 in 4 months at a 3% interest rate, you would need to invest approximately $625.00.
Step-by-step explanation:
To find the principle needed to invest at a rate of 3% to earn $700 in 4 months, we can use the formula:
Principle = Amount / (1 + (rate × time))
Substituting the given values into the formula:
Amount = $700
Rate = 0.03 (since 3% is equivalent to 0.03)
Time = 4 months
Principle = $700 / (1 + (0.03 × 4))
Principle = $700 / (1.12)
Principle ≈ $625.00
Therefore, you would need to invest approximately $625 to earn $700 in 4 months with a 3% interest rate.