Final answer:
Calculating the withdrawals using a present value of $130,000, an interest rate of 6.6% compounded quarterly, and 10 years (40 quarters) of withdrawals gives us approximately $3,087.17. To find the size of the withdrawals, use the present value and interest rate in the formula Withdrawals = Present Value * (1 - (1 + interest rate)^-number of periods) / interest rate.
Step-by-step explanation:
To find the size of the withdrawals that can be made at the end of each quarter for the next 10 years, we need to calculate the quarterly withdrawals using the present value and the interest rate. We can use the formula:
Withdrawals = Present Value * (1 - (1 + interest rate)^-number of periods) / interest rate
In this case, the present value is $130,000, the interest rate is 6.6%, compounded quarterly, and the number of periods is 10 years * 4 quarters per year = 40 quarters. Plugging in these values, we get:
Withdrawals = $130,000 * (1 - (1 + 0.066/4)^-40) / (0.066/4) = $3,087.17
Therefore, the size of the withdrawals that can be made at the end of each quarter for the next 10 years is approximately $3,087.17.