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.

One example of a situation where you might use the savings plan formula to find the payments required is when you are planning for a major purchase, such as buying a house or a car. Let's say you want to buy a car that costs $20,000, and you want to save up for it within a certain timeframe, let's say 3 years.

To calculate the monthly payments, you can use the formula for a savings plan:

PMT = (PV * r) / (1 - (1 + r)^(-n))

Where:
PMT is the monthly payment
PV is the present value or the goal amount ($20,000 in this case)
r is the monthly interest rate
n is the number of months (3 years = 36 months)

Let's assume the interest rate is 5% per year, which would translate to a monthly interest rate of 0.05 / 12 = 0.004167.

Using these values, we can plug them into the formula:

PMT = (20,000 * 0.004167) / (1 - (1 + 0.004167)^(-36))

Calculating this equation will give you the monthly payment you need to make in order to save up $20,000 within a 3-year timeframe.

Let's consider an example where you want to save a certain amount of money for a vacation. Suppose you want to save $5,000 in one year, starting from today. You estimate that you can earn an annual interest rate of 6% on your savings. Now, you want to determine the monthly payments required to achieve your savings goal.

To solve this using the savings plan formula, we can use the below information:
- PV (Present Value): Since you don't have any initial savings, this value will be zero.
- FV (Future Value): The desired savings goal, which is $5,000.
- r (Interest Rate): The annual interest rate of 6%. To calculate the monthly interest rate, we divide it by 12 (months) and convert it to a decimal.
- n (Number of Periods): Since you want to achieve your goal in one year, the number of periods will be 12 (months).
- PMT (Payment): The monthly payments required to achieve your savings goal.

The savings plan formula is: PMT = (FV - PV) / ((1 + r)^n - 1)

Plugging in the values from our example:
PMT = (5000 - 0) / ((1 + 0.06/12)^12 - 1)

Simplifying the equation will give you the monthly payment required to reach your savings goal of $5,000 in one year.

By any chance could you tell us what your answer is and then we can check it and fix it for you? At least just so that we know that you are trying?

A banker and there’s 3000 and a mutual fun and wants to calculate the monthly payments in order to earn 8400 of after four years