I have searched and searched, but not been able to find the correct method to answer this kind of question:

"How much would you have to invest today in order to receive USD 5000 each year for 10 years, at an interest rate of 8%.

I would be very grateful for an example on how to solve this kind of question.

Paraphrasing, "What amount A would have to be deposited into an account that earns 8% per year on the invested balance, such that one could withdraw $5,000 per year for 10 years (at the end of each year), and such that the final withdrawal would exactly empty out the account?"

This type of scenario has a nice closed-form solution, given by the formula



In your case, the roles of the annual withdrawal w, the interest rate r, and the number of years n, are being played by 5,000; 0.08; and 10; respectively. Give that a spin.