looni wrote:...what must the deposit be in 2015 to obtain a balance of $500,000 in 2025?
I assumed a=...
Not knowing the variables in your formula, nor how they're defined, it is difficult to comment specifically. But it seems unlikely that one would need to deposit nearly a million dollars in order to have, after ten years of compound interest, only HALF a million dollars.
looni wrote:2. In the above problem, instead of an initial deposit in 2015, contributions are made at the end of each month. To obtain the same nal balance of $500,000, what must the size of each contribution be?
i'm confused on this one. wouldn't it be a monthly compound too if she is making contributions at the end of each month? and i also do not know which formula to use for this problem.
I don't know what a "nal balance" is, but you should probably use an annuity formula for this annuity problem.