If an investor wants to increase their investment by $1,000 monthly after a $250 decline, how much should they invest next month?

To determine the correct amount the investor should invest next month, it's essential to recognize the intention to increase their investment by $1,000 monthly after experiencing a $250 decline.

The investor's goal is to maintain the trajectory of increasing their monthly investment despite the recent downturn. Typically, an increase in investment suggests making up for losses and then adding the desired increment. In this case, the initial investment was presumably $1,000. After the $250 decline, the effective investment amount would be $750.

To achieve the goal of increasing the investment by $1,000, the investor would need to compensate for the lost amount of $250 first, bringing it back to the original investment level of $1,000. Then, to fulfill their goal of increasing by $1,000, they would need to add another $1,000 on top of that, resulting in a total investment of $1,250 for next month.

This calculation reflects the investor's strategy to adapt to past losses while still pursuing their investment growth objective. Therefore, investing $1,250 next month allows them to address both the recovery from the decline and adhere to their planned increase.