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 https://brainly.com/question/14295570
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