Hi all. First of all, I apologize if this is posted in the wrong section. Since this is a grade 11 problem, I thought this was an appropriate section.
Maybe someone can take a crack at this problem? I tried a bunch of times and can't get the answer in the textbook. It totally could be giving the wrong answer, I'd just like to see how the "pros" would solve this one. I've managed to solve the other textbook questions without too much trouble, so I know I'm not in left field on this one.
Below is the problem. The textbook anser is $1572.66/quarter. The best answer I could come up with is $19,070.96/quarter. I appreciate the help!
(Note: This problem comes from the Annuities Present Value section)
Leo invests $50 000 at 11.2%/a compounded quarterly for his retirement. Leo's financial advisor tells him that he should take out a regular amount quarterly when he retires. If Leo has 20 years until he retires and wants to use the investment for recreation for the first 10 years of retirement, what is the maximum quarterly withdrawal he can make?