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Sagot :
Using the future value formula, it is found that you would need to deposit $272.95 in the account each month.
What is the future value formula?
It is given by:
[tex]V(n) = P\left[\frac{(1 + r)^{n-1}}{r}\right][/tex]
In which:
- P is the payment.
- n is the number of payments.
- r is the interest rate.
For this problem, considering that there are monthly compoundings, the parameters are:
r = 0.08/12 = 0.0067, V(n) = 300000, n = 25 x 12 = 300.
Hence we solve for P to find the monthly payment.
[tex]V(n) = P\left[\frac{(1 + r)^{n-1}}{r}\right][/tex]
[tex]300000 = P\left[\frac{(1.0067)^{299}}{0.0067}\right][/tex]
1099.12P = 300000
P = 300000/1099.12
P = $272.95.
You would need to deposit $272.95 in the account each month.
More can be learned about the future value formula at https://brainly.com/question/24703884
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