PV is equal to PMT * [(1 - (1 + r)(-n)]/r

Where: The amount you must deposit today is equal to the present value, or PV.

PMT = Monthly Payment ($5,000)

r = Monthly Interest Rate (0.0075)

(5 years * 12 months/year = 60 months) = Number of months

Let's figure out the current value:

PV = $5000 * [(1 - (1 + 0.0075)^(-60)) / 0.0075]

PV $5000 * [(1 - 0.5488) / 0.0075]

PV $5000 * (0.4512 / 0.0075)

PV $5000 * 60.16 PV $300,800

Therefore, assuming an interest rate of 0.75% per month, you would need to deposit roughly $300,800 today to receive $5000 each month for the following five years.

Let's now figure out the monthly interest rate you would need to achieve with only $200,000 available for deposit. The same present value formula will be modified to account for the interest rate as follows:

(PMT * n) / PV = r - 1

Where: PMT = Monthly Payment ($5,000)

(5 years * 12 months/year = 60 months) = Number of months

($200,000) Present Value

Now let's figure out the interest rate:

r = [($5000 * 60) / $200,000] - 1 r = (300,000 / 200,000) - 1 r = 1.5 - 1 r = 0.5

Therefore, to maintain the $5000 monthly payments for 5 years if you only have $200,000 to deposit, you would need to earn an interest rate of 0.5% per month.

Then, assuming you have $200,000 to deposit and can earn 0.75% per month, let's determine how many months you could receive the $5000 payment. We'll determine the number of periods (months) using the future value formula:

n is equal to log(FV/PV) / log(1+r)

Where: FV = Future Value (your potential earnings in total);

($200,000) Present Value

r = Monthly Interest Rate (0.0075)

Let's figure out how many months there are:

n is equal to log((FV)/$200,000)/log(1 + 0.0075)

94.69 is the result of n = log($200,000)/log(1.0075)

Therefore, if you have $200,000 to deposit and can earn 0.75% interest per month, you could receive the $5000 payment for roughly 94 months (or roughly 7 years and 10 months).

Let's finally figure out how much you could get each month for five years. The monthly payments can be determined using the future value formula as follows:

PMT = [(1 + r)n - 1] / [(FV * r)]

In this case, FV = Future Value ($200,000)

r = Monthly Interest Rate (0.0075)

(5 years * 12 months/year = 60 months) = Number of months

Let's figure out the monthly installment:

PMT = ($200,000 * 0.0075) / [(1 + 0.0075)^60 - 1]

PMT $1500.19

Consequently, if you deposit $200,000 and can earn 0.75% interest per month, you could receive about $1500.19 per month for a period of five years.