Question

How much should you deposit right now at 6% compounded monthly so that you can withdraw $1000 each month for 10 years?

thanks in advance!

Answer 1

let's assume the withdrawals are at the end of the month.
present value = 1000(1 - 1.005^-120)/.005
= 90073.45

Answer 2

I believe the formula you want is the present value of an annuity

PV = C * [(1 - (1+r)^-n]/r

Where C = payment per period
r = interest rate per period
n = periods.

PV = 1000 * (1 - 1.005^-120)/.005
= 90,073.45