Loadstar Sensors is a company that makes load-force sensors based on capacitive sensing technology. The company wants to have $28 million for a plant expansion 5 years from now.
If the company has already set aside $12 million in an investment account for the expansion, how much more must the company add to the account next year (i.e., 1 year from now) so that it will have the $28 million 5 years from now?
The account earns interest at 12% per year, compounded monthly.