Asked by meshelle

Can someone help me with this question please.

Raymond opened a savings account that pays 1.5% interest on his balance. The interest he received so far on his balance of $500 is $3.75. Can you tell from this info how long he’s had the $500 in the account? Also, for terminology, what is the Rate, the Principle and the base?

Answered by Ms. Sue
Interest equals principal times rate times time.
I = p * r * t
3.75 = 500 * 0.015 * t
3.75 = 7.5t
3.75/7.5 = t
0.5 = t

0.5 = 1/2 year

Check this site.

http://math.about.com/od/businessmath/ss/Interest.htm
Answered by DanH
Use interest = principle x rate x time.

I'm not sure what you mean by "base."

Principle here is $500, rate is 1.5%, and interest is $3.75.
Can you solve it from here?
Answered by meshelle
I still do not understand.
Answered by DanH
Try to specific and tell us what exactly you do not understand
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