Withdrawn of an investment

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Skaffa math guy

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Consider an investment of $5000 at 6% convertible quarterly. How much can be withdrawn at the end of each half-year to use up the fund exactly at the end of 10 years?
 
Skaffa math guy said:
Consider an investment of $5000 at 6% convertible quarterly. How much can be withdrawn at the end of each half-year to use up the fund exactly at the end of 10 years?
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Please share your work/thoughts about this assignment
 
See the picture... There must be a quicker way to do this...
 

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There are ways to do it that actually answer the question. Please add up your "withdrawal" column. Why is it less that 5000? How did we liquidate 5000 plus interest at 6% by withdrawing only 124.38 * 20 = 2488?
 
tkhunny said:
There are ways to do it that actually answer the question. Please add up your "withdrawal" column. Why is it less that 5000? How did we liquidate 5000 plus interest at 6% by withdrawing only 124.38 * 20 = 2488?
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True... I don't know how to calculate the exact amount that can be withdrawn, is there a formula for this?
 
Skaffa math guy said:
True... I don't know how to calculate the exact amount that can be withdrawn, is there a formula for this?
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"exact"? Seriously, you're not even close...

Let's see what you get from the investigation Subhotosh Khan has suggested.

Can you add up a finite geometric series? This is a necessary skill.
 
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