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Gary wants to retire in 25 years time, and so decides to start a new retirement savings account. He wants to accumulate 1000000 dollars by the time he retires.
Initially, Gary deposits 2000 dollars into the account. He will make further deposits at the end of each month.
The account will earn interest at annual rate 8 percent, compounded monthly.
How much will he have to deposit into the account each month in order to reach this target after 25 years? (Give your answer, in dollars, correct to the nearest cent.)
State the null and alternative hypotheses
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