Answer: you should deposit $236.2 each month.
Step-by-step explanation:
We would apply the formula for determining future value involving deposits at constant intervals. It is expressed as
S = R[{(1 + r)^n - 1)}/r][1 + r]
Where
S represents the future value of the investment.
R represents the regular payments made(could be weekly, monthly)
r = represents interest rate/number of payment intervals.
n represents the total number of payments made.
From the information given,
there are 12months in a year, therefore
r = 0.09/12 = 0.0075
n = 12 × 35 = 420
S = $700000
Therefore,
700000 = R[{(1 + 0.0075)^420 - 1)}/0.0075][1 + 0.0075]
700000 = R[{(1.0075)^420 - 1)}/0.0075][1.0075]
700000 = R[{(23.06 - 1)}/0.0075][1.0075]
700000 = R[{22.06}/0.0075][1.0075]
700000 = R[2941.3][1.0075]
700000 = 2963.36R
R = 700000/2963.36
R = 236.2
