Question

Could someone please help me solve this? Brainly if correct

Answer 1

You will need to deposit  $ 10,957 each year until retirement to achieve your retirement goals.

What is compound interest, and how does it work?

Compound interest is computed on a loan or deposit based on the starting principle and the preceding period's accrued interest.

Principal(P)=$40,000

(Time period)T=25+15 = 40 year

R=8%

The final balance is $273,938.99 and the total compound interest is $233,938.99.

The amount he has to deposit each year is found as;

⇒$273,938.99/25

⇒ $ 10,957

Hence. you will need to deposit  $ 10,957 each year until retirement to achieve your retirement goals.

To learn more about compound interest, refer to brainly.com/question/14295570

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