+118654 
Quote:Yep, 10,000 is the answer.I assume that $10000 is your answer is that right?
Quote:If I understand the problem correctly the answer is indeed 10000. That amount of principal will generate 250 in interest every 6 months leaving the principal untouched always.Have you looked at this logically to see if it could be right?
Quote:To withdraw 500 a year, 250 every six months, for 10 years I would need 5000 but that would leave my account clean I think the problem wants me to leave the principal untouched and to withdraw only the interestIf you got no interest at all, how much money would you need in your account?
Quote:I think the problem wants to leave the principal untouched, that is, the same amount at the beginning the same amount at the end.How much money do you want in the account at the end of 10 years. I am assuming that you didn't want any. Is that what you meant?
Quote:Good question =)You have answered a good question, I am just not sure that it is the question that you intended. Do you know what question you have answered?
+118654 Melody:okay I misunderstood, I thought you wanted to use up the interest as well as the principal in the 10 years.
You are also correct in thinking that you have turned a mole hill into a mountain.
I assume your logic is correct since you got the right answer but how about thinking of it like this.
You want to get $250 interest every 6 months because you will take that out and your principal will remain untouched.
I = P r t (You can use simple interest since you are only talking about 1 time period)
r = 0.025
t=1 (time period)
I = $250
P is unknown
250 = P * 0.025 * 1
P = 250 / 0.025
P= $10000
This is a little more straight forward I think.
Quote:If you only have a hammer, you tend to see every problem as a nail.
