Use the table to answer the question. Monthly Contribution (dollars) Total Amount after 7 Years of Investment with a 4% Annual Interest Rate (dollars) 25 2,426.92 50 4,853.83 75 7,280.75 100 9,707.67 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. 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? (1 point) $ Skip to navigation

Answer 1

The minimum amount that this investor should invest each month is $75.

After 7 years of investment with a 4% annual interest rate, compounded monthly, a monthly contribution of $75 will result in a total amount of $7,280.75, which is greater than the goal of having at least $7,000.