This is how you wrote your formula: 1200×(1 - (1 + 0.032/12 - 120))/(0.032/12), which is not correct. I believe it should be written like this: 1200 x (1 - (1+ 0.032/12)^-120) / (0.032/12) = $123,093.73 - This is the Present Value of 120 annuity payments of $1,200 each over a period of 10 years, or 120 months @ 3.2% comp. monthly.