A bank is paying 6% p.a compound interest (compounding annually). How much should I deposit now if I wish to have $10,000 in my account 5 years from now?
We have
10000 = P ( 1 + .06)^5 divide both sides by (1 + .06)^5
10000 / (1 + .06)^5 = P ≈ $7472.58
+21 
