Answer
The semmiannual withdrawals possible is equal to \$2,160.22
Work Step by Step
The formula for the payment value for an ordinary annuity is:
$PMT = PV\frac{i}{1-(1+i)^{-n}}$
Where:
$PV= 10,000$
** The withdrawals are made semmiannualy (2 times per year), so m = 2.
$i=r/m=\frac{0.0525}{2} = 0.02625$
$n=mt=2 \times 2.5=5$
So:
$PMT = (10,000)\frac{0.02625}{1-(1+0.02625)^{-5}} = 2,160.22$
