Question for the Mathmos!!
Say, you have 5 million pounds saved in a bank account with an yearly interest rate of 5% fixed, paid in twice every year. You may assume that it is compound interest. And you plan to spend it over the next 50 years. And you have also decided (for no reason) that you should take out the same amount at the beginning of every year so that you end up with 0 pound in your bank account at the beginning of the 50th year. So, how much should you take out? I would like to see the full work out please.
Side Note: I've no idea what the answer is since I've not thought about the question long enough. This is one of those things come to me while I'm playing Puzzle Fighter. I also strongly feel I should appologise now just in case the question kills any brain cells out there. Anyway, having fun having headaches. Cheers!