The monthly deposit that is required to achieve the desired monthly yield at retirement is $1,056.71.
<h3>What is the monthly deposit?</h3>
An annuity is a series of payment that is made over a period of time. The annuity in this question would last for 25 years. When an investment is compounded monthly, it means that the investment would grow at an exponential rate once in a month.
The formula that would be used to determine the monthly payment is:
Monthly payment = future value / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
- r = monthly interest rate = 4.8% / 12 = 0.4%
- n = number of periods = number of compounding x number of years: 12 x 25 = 300
$610,823.48 ÷ [{(1.004^300) - 1} / 0.004] = $1,056.71
To learn more about annuities, please check: brainly.com/question/24108530
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