Multiple choice technology

To save $60,000 in 18 years, which function could calculate how much to save each month to end up with that amount?

  1. FV

  2. PV

  3. AMT

  4. PMT

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The PMT (Payment) function calculates periodic payments needed to reach a future value. To save $60,000 in 18 years, PMT can determine the monthly savings amount required given an interest rate and time period.