Answer
$PV=\$ 966.18$
Work Step by Step
The future value of an investment of $PV$ dollars at an annual simple interest rate of $r$ for a period of $t$ years is $FV=PV(1+rt)=PV+INT$ .
Given:
r = 0.0$7$ ($ 7\%$ per year),
FV= 1,000,
t = 0.5 (6 months =$\displaystyle \frac{6}{12}=\frac{1}{2}$ years),
we solve $FV=PV(1+rt)$ for PV:
(divide both sides by (1+rt) )
$ PV=\displaystyle \frac{FV}{(1+rt)}=\frac{1000}{1+(0.07)\cdot 0.5}\approx$966.183574879...
rounded to the nearest cent: $PV=\$ 966.18$
