The monthly deposit required to save up to $625,357.24 (future value) in 40 years at a 7.2% APR is <u>$225.20</u>.
<h3>What is the monthly deposit?</h3>
The monthly deposits are the periodic savings that the investor must make to achieve future value.
The monthly deposit is compounded at the monthly annual percentage rate (APR).
We can compute the required monthly deposits using an online finance calculator as follows:
N (# of periods) = 480 months (40 years x 12)
I/Y (Interest per year) = 7.2%
PV (Present Value) = $0
FV (Future Value) = $625,357.24
<u>Results</u>:
Monthly Deposits (PMT) = $225.20
Sum of all periodic payments = $108,096 ($225.20 x 480)
Total Interest = $517,261.24
Thus, to save $625,357.24 in 40 years, you need to deposit <u>$225.20</u> monthly.
Learn more about periodic deposits (payments) at brainly.com/question/13031679
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