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Default DROP DOWN MENUS with formulas

I am trying to create an easy budget. I have a drop down menu with pay
periods or bill payments as daily, weekly, bi-weekly, monthly etc. These are
all in a drop down menu, but now I need to link the chosen drop down menu
period to calculate everything into a monthly payment amount.
I have tried "vlookup" but without success, maybe I don't understand it
enough, but is any way to link a drop down menu choice to a formula?

Thanks

 
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