How much money total $1000

You find mutual fund that offers approximately 6% APR compounded monthly. How much will you need each month for the next yr in order to have $1000?
A.$72.19
B.$63.75
C.$59.28
D.$81.06

D. $81.06

This assumes that you start paying next month, and after the 12th deposit you'll have a total of $1000.


However,
if you pay $80.66 each month starting RIGHT NOW, then you'll have $1000 after the 12th interest payment.

I often wish that questioners would give at least some indication of the method they wish to use in arriving at a solution. There is more than one way to approach this sort of problem.

In the lack of any such indication, I use the formula

P = M { (1 + r)^n - 1 } / r

M = monthly deposit

r = effective monthly interest rate ( as a fraction )

n = number of periods.

So, interest rate applied per month = 0.06 / 12 = 0.005 ; therefore we have

1000 = M { 1.005^12 - 1 } / 0.005

M = { 1000 x 0.005 } / { 1.005^12 - 1 }

. . = 5 / 0.061678

. . = 81.066