Reference no: EM132768632
Problem 1: Suppose you estimate that the effective rate of return (EAR) you can generate from your investment is 7%. If you are planning to invest with fixed dollar amount of monthly investment, starting right now (first investment payment will be made today), in order to come up with $30,000,000 retirement fund in 10 years. Which of the following can help you figure out the monthly investment amount?
A) =PMT(0.07, 10, 0, 30000000,0,0)
B) = PMT(0.07,10, 30000000,0,0)
C) = PMT((1.07^(1/12)-1, 120, 0, 30000000, 0)
D) = PMT((1.07^(1/12)-1, 120, 0, 30000000, 1)
E) = PMT((1.07^(1/12)-1, 120, 30000000,0,1)