An investment earns 7% per year and is worth $1,000 after 7 months.

How would you solve that?

The formula for present value (pv) given the future value (fv), rate (r), number of times per year compounded (n), and time in years (t) is:

pv = fv / (1 + r/n) ^ (n*t)

You didn't give the compounding per year so I'm going to assume that it is annual (n=1). So plug in fv (1000), r (0.07), and t (7/12) and you get.

pv = 1000 / (1 + 0.07) ^ (7/12)

pv = $961.30

If your rate is compounded monthly, then use n=12 and re-figure.

Yes

An investment earns 7% per year and is worth $1,000 after 7 months.

How would you solve that?