<em><u>The least amount of money you would need to invest per month is; $335</u></em>
<em><u>The anticipated rate of return on your investments is; 7%</u></em>
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Amount to have been saved at the end of 10 years ≥ $40,000
Number of years of savings = 10 years.
We want to find out the least amount to be invested per month.
There are 12 months in a year. Number of months in 10 years = 10 × 12 = 120 months.
Thus, amount to be saved monthly = 40000/12 = $333.33
Since the minimum amount he wants to save after 10 years is $40000, then we need to approximate the monthly savings in order.
Thus;
Monthly savings ≈ $335
Now, for the anticipated rate of return on the investment, we know from S & P's that the benchmark on good rate of return for investment is a minimum of 7%.
From online calculator, the worth of the investment after 10 years based on 7% rate of return yearly would be $57626.
