Suppose he will withdraw the same amount each month. It may be a different amount; for example, he can withdraw `$ 0 , ` or he can withdraw monthly interest to leave the same amount on the balance. I suppose the question is asking about the maximum amount that he can withdraw monthly without getting into debt so that, at the end, he will have zero at his account.

In this case, the amount on the account will decrease each month (except the first one), so we can use Present Value of an Ordinary Annuity formula:

`PV = ( P M T ) / i ( 1 - 1 / ( 1 + i )^n ) .`

Here month interest `i = 6.25 / 100 * 1 / 12 , ` "loan" amount is the amount after 1 month, in other words `PV = 25000 ( 1 + i ) , ` and the number of months is `3 * 12 - 1 = 35 . ` The monthly withdraw amount is `P M T ,` which we want to find.

This way,

`PMT = PV * ( i ( 1 + i )^n ) / ( ( 1 + i )^n - 1 ) = 25,000 * ( i ( 1 + i )^36 ) / ( ( 1 + i )^35 - 1 ) approx 787.29 ($) .`

**Further Reading**

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