If a 6 month term deposit pays a simple interest rate of $2.75 \%$, how much must be deposited to earn $\$ 100$ of interest.
Answer
\(\boxed{7272.73}\) is the amount that must be deposited to earn $100 of interest.
Step 1 ：We are given the interest I as $100, the annual interest rate R as 2.75% or 0.0275 in decimal form, and the time T as 6 months or 0.5 years. We need to find the principal amount P.
Step 2 ：We can use the formula for simple interest, which is I = PRT, and rearrange it to solve for P. This gives us P = I / (RT).
Step 3 ：Substituting the given values into the formula, we get P = 100 / (0.0275 * 0.5).
Step 4 ：Calculating the above expression, we find that P is approximately 7272.73.
Step 5 ：\(\boxed{7272.73}\) is the amount that must be deposited to earn $100 of interest.
