Final answer:
Conor should contribute approximately $520.73 each month into the account to have $25,000 for the down payment in 4 years.
Step-by-step explanation:
To calculate how much Conor should contribute each month into the account, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the amount of money Conor wants to have ($25,000)
- P is the amount of money Conor contributes each month
- r is the annual interest rate (6.3%)
- n is the number of times interest is compounded per year (12 for monthly compound)
- t is the number of years (4)
Substituting the given values into the formula, we can solve for P:
25,000 = P(1 + 0.063/12)^(12*4)
Simplifying the equation, we find that P = $520.73. Therefore, Conor should contribute approximately $520.73 each month into the account to have $25,000 for the down payment in 4 years.