It's annuity problem To solve your question use the formula of the present value of annuity ordinary which is Pv=pmt [(1-(1+r)^(-n))÷r] Pv present value? PMT yearly payments 18000 R interest rate 0.09 N time 20 years So Pv=18,000×((1−(1+0.09)^(−20))÷(0.09)) pv=164,313.82