Determine the present value P that must be invested to have the future value A at simple interest rate r after time t. A = $7000, r = 1.75%, t = 9 months The present value P that must be invested is $ (Round up to the nearest cent as needed.)

To get the best loan rates available, the Riches want to save enough money to place 20% down on a $160,000 home. They plan to make monthly deposits of $125 in an investment account that offers 8.5% annual interest compounded semiannually. Will the Riches have enough for a 20% down payment after five years of saving? How much money will they have saved?