1. ## Present Annuity?

John wishes to set up an account for his grandfather so that he can have some extra money each month. John wants his grandfather to be able to withdraw $110.00 per month for the next 2 years. How much must John invest today at 7% per year compounded monthly so that his grandfather can withdraw$110.00 per month for the next 2 years?

I am unsure of the formula to use for this problem. Is this a present annuity problem? If so, how do I work it?