To determine how much Jessica needs to deposit each month into her account, we can use the formula for the future value of an ordinary annuity, as the deposits are made at the end of each month. The formula is:

$FV = P \times \frac{(1 + r)^n - 1}{r}$

Where:

• $FV$ is the future value (Jessica's goal) = $11,000
• $P$ is the monthly deposit (what we want to find)
• $r$ is the monthly interest rate (annual interest rate divided by 12 months) = $\frac{7\%}{12} = \frac{0.07}{12} \approx 0.005833$
• $n$ is the total number of deposits (number of months over 5 years) = $5 \times 12 = 60$

We can rearrange the formula to solve for $P$:

$P = \frac{FV \times r}{(1 + r)^n - 1}$

Now, let's calculate the monthly deposit $P$.Jessica needs to deposit approximately $153.65 each month to accumulate $11,000 by the end of 5 years, with a 7% annual interest rate compounded monthly.

Would you like more details or have any questions? Here are five related questions that might interest you:

1. What would happen if the interest rate increased to 8%?
2. How much interest will Jessica have earned after 5 years?
3. What if Jessica could only deposit $100 per month? How much would she accumulate?
4. How would the required deposit change if Jessica wanted to accumulate $15,000 instead?
5. What if Jessica deposits the money at the beginning of each month instead of the end?

Tip: Compound interest grows faster when interest is compounded more frequently (like monthly or daily).