Question: Tom puts $10,000 into a bank account that pays an annual effective interest rate of 4% for ten years. If a withdrawal is made during the first five and one-half years, a penalty of 5% of the withdrawal amount is made. Tom withdrawals K dollars at the end of each of 4, 5, 6 and 7 years. The balance in the account at the end of year 10 is $10,000. Calculate K
Part of the calculations: If no withdrawals than total amount is 10K(1.04)^10 =$14802.42
$14802.42-$10000 = $4802.20 has been withdrawn
Withdrawals = $4802.20 = x(1.05) + x(1.05) + x + x
I know this is wrong, but how far wrong?