My question will be simple for some of you:)

I get confused when being asked for present value and future value in complex questions.

Example:

What amount of capital will support a monthly income (before tax)of $3200 from investment assume MrX will live 20 years after they retire at age 65 and the nominal rate of return on their investments during retirement will be 6% compounded monthly. They plan to deplete the capital over 20 yrs with their first payment beginning one month after retirement begins.

Payment $3200; N20x12=240; I 6/12=0.5

Why are we looking for present value ???

Please help

Thank you!