Based on the amount to be accumulated and the return, the amount to invest per month is $144.71.
The amount to invest will be constant which makes it an annuity. First we need to convert the interest rate and period to periodic figures.
= 5.625% / 12 months = 5 years x 12 month
= 0.46875% = 60 months
The $10,000 will be the future value of the annuity.
Future value of annuity = Annuity x ( ( 1 + interest) ^ number of periods -1)/interest
10,000 = Annuity x ( ( 1 + 0.46875%)⁶⁰ - 1) / 0.46875%
10,000 = Annuity x 69.101758487
Annuity = 10,000 / 69.101758487
= $144.71
In conclusion, he should invest $144.71 each month.
Find out more on the future value of annuities at https://brainly.com/question/24559701.
