The information in the table shows how much a specific monthly contribution will result in after 7 years of investment with a 4% annual interest rate, compounded monthly.

Question

If the goal is to have at least $7,000 after 7 years, what is the minimum amount that this investor should invest each month?

Answer 1

To find the minimum amount that the investor should invest each month, we need to find the contribution amount that will result in at least $7,000 after 7 years.

Looking at the table, we can see that the closest contribution amount to $7,000 after 7 years is $97.56.

Therefore, the minimum amount that this investor should invest each month is $97.56.