A young executive deposits $300 at the end of each month for 8 years and then increases the deposits. If the account earns 7.2%, compounded monthly, how much (to the nearest dollar) should each new deposit be in order to have a total of $400,000 after 25 years?
A man invests £3,000 initial
deposit and then increases the deposits by £100 each month for 8 years. If the account earns 7.2%, compounded monthly, how much (to the nearest pound) should each new deposit be in order to have a total of £400,000 after 25 years?
The new deposit amount should be £150 per month in order to have a total of £400,000 after 25 years.