You want to deposit enough money into the bank so that you can withdraw $10,000 at the end of each month for 10 years. If the banks pays 9% interest compounded monthly, how much money should you deposit?
Solve 
Step 
i = 0.9 ÷ 12 = 0.0075 
k = 12, r = 0.09, Monthly means 12 times a year 

P
is payment = 10,000 n = 10 years 
Find the Present Value  


You would have to deposit $789,416.93 so that you can withdraw $10,000 a month for 10 years.  
Enter 10,000 × ( 1  1.0075 x^{y } 120 ) ^{ }÷ .0075 [enter or =] in your calculator  
Hint: don't round until you are completely finished with your calculations. 