Annie Laerz Wants to Invest $20,000 on January 1, 2014

Multiple Choice

Annie Laerz wants to invest $20,000 on January 1, 2014, so that she may withdraw 10 annual payments of equal amounts beginning January 1, 2029. If the fund earns 6% annual interest over its life, what will be the amount of each of the withdrawals? (Use spreadsheet software or a financial calculator to calculate your answer. Round intermediary calculations two decimal places and round your final answer to the nearest dollar.)

A) $20,000
B) $6,512
C) $6,144
D) $8,584