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 (future value)

  2. PV (present value)

  3. PMT (payment)

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The PMT function calculates the periodic payment needed to reach a future value (FV) or pay off a present value (PV). For savings goals, you'd use PMT with a target FV of $60,000, specifying the interest rate and number of periods (18 years × 12 months = 216 periods). PV represents current value, not future savings goals, and FV is the target amount, not the calculation function.

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