Miracle Corporation Wants to Withdraw $60,000 from a Savings Account

Multiple Choice

Miracle Corporation wants to withdraw $60,000 from a savings account at the end of each year for ten years beginning one year from now. The savings earns 10% and is compounded annually. Which one of the following reflects the correct procedure to determine the required initial investment at the beginning of the first year?

A) $60,000 times the present value of a 10-year, 10% ordinary annuity.
B) $60,000 divided by the future value of a 10-year, 10% ordinary annuity.
C) $60,000 times the future value of a 10-year, 10% ordinary annuity.
D) $6,000 divided by the present value of a 10-year, 10% ordinary annuity.