Based on the comment to an answer elsewhere by OP, I'd try to solve this problem, purely based on volumes. However, these calculations has ignored the volume contraction of 96% ethanol may have showed initially (that should be minimal since it is only ~4% of water by volume in there).
I'd say, your equation, regardless of how OP has derived it, is erroneous. I also like to change the variables OP has used to followings:
- $V_{Tot}$ is the desired Total amount of desired ethanol-water solution (in liters);
- $P_\%$ is the desired Percentage of ethanol in the final solution (in $\%(v/v)$;
- $V_{W}$ is the calculated amount of Water (in liters); and
- $V_{E}$ is the calculated amount of $96\%(v/v)$ ethanol (in liters).
Accordingly, the needed volume of pure ethanol $ = V_{Tot} \times \frac{P_\%}{100}=0.96V_{E}$. Thus,
$$ V_{E} = \frac{V_{Tot} \times P_\%}{100 \times 0.96}= \frac{V_{Tot} \times P_\%}{96} \tag{1}$$
Note that this is actually OP's first equation, but it is for $V_{E}$ ($E$ in OP's notation) instead of $V_{W}$ ($W$ in OP's notation).
Now we can derive the equation for $V_{W}$. Actual $V_{W}$ is:
$$V_{W}=V_{Tot}\left(\frac{100-P_\%}{100}\right)$$
Yet, we cannot use $V_{W}=V_{Tot}-V_{E}$, because some water is coming from $V_{E}$. That amount of water is $ 0.04V_{E} = 0.04 \times \frac{V_{Tot} \times P_\%}{96}$. Thus, we can manipulate this equation as follows:
$$V_{W}=(V_{Tot}-V_{E})-0.04 \times \frac{V_{Tot} \times P_\%}{96}= V_{Tot}\left(\frac{100-P_\%}{100}\right)-0.04 \times \frac{V_{Tot} \times P_\%}{96}\\=\frac{96-P_\%}{96}\times V_{Tot} $$
$$\therefore \; V_{W}=\frac{96-P_\%}{96}\times V_{Tot} \tag{2}$$
Now we apply these two equation to OP's example of making 50% solution:
If $P_\% = 50$ and $V_{Tot} = \pu{50 L}$, from equation $(1)$ and $(2)$,
$$ V_{E} = \frac{V_{Tot} \times P_\%}{96}= \frac{50 \times 50}{96} = \pu{26.042 L}$$
$$V_{W}=\frac{96-P_\%}{96}\times V_{Tot} = \frac{96-50}{96}\times 50 = \pu{23.958 L}$$
Thus, theoretical total (disregarding contraction) is $\pu{50 L}$. Acutally, practical volume must be a little off but your percentage by volume is much close to 50% (only volume contraction did not account is initial 96% ethanol).
Late edition to fulfill OP's request:
If $P_\% = 35$ and $V_{Tot} = \pu{100 L}$, from equation $(1)$ and $(2)$,
$$ V_{E} = \frac{V_{Tot} \times P_\%}{96}= \frac{100 \times 35}{96} = \pu{36.458 L}$$
$$V_{W}=\frac{96-P_\%}{96}\times V_{Tot} = \frac{96-35}{96}\times 100 = \pu{63.542 L}$$