Posted by **meshelle** on Thursday, December 4, 2008 at 9:22pm.

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?

- MATH -
**Ms. Sue**, Thursday, December 4, 2008 at 9:29pm
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

- MATH -
**DanH**, Thursday, December 4, 2008 at 9:30pm
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?

- MATH -
**meshelle**, Thursday, December 4, 2008 at 10:13pm
I still do not understand.

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