Give an example of a situation in which you might want to solve the savings plan formula to find the payments, PMT, required to achieve some goal. Choose the correct answer.

A. A teenager wants to buy a car by depositing a lump sum of money today and letting it grow through the power of compound interest.

B. An employee would like to retire 25 years from now and have a retirement fund from which she can draw an income of $50,000 per year, forever.

C. A parent wants to build a $100,000 college fund in 18 years by making regular, end-of-month deposits.

D. A banker invests $3,000 in a mutual fund and wants to calculate the monthly payments in order to earn $8,400 after four years