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?
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
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?
I still do not understand.
Try to specific and tell us what exactly you do not understand
To answer the first part of your question, we can determine how long Raymond has had the $500 in the account by using the formula for simple interest:
Interest = (Principal x Rate x Time)
Given that the interest received is $3.75, the principal amount is $500, and the rate is 1.5%, we can set up the equation:
3.75 = (500 x 0.015 x Time)
To solve for Time, divide both sides of the equation by (500 x 0.015):
3.75 / (500 x 0.015) = Time
Time = 5
Therefore, Raymond has had the $500 in the account for 5 units of time. The specific unit of time (e.g., days, months, years) is not given in the question, so we cannot determine the exact duration.
In terms of terminology:
- The rate refers to the interest rate at which the money in the account grows. In this case, it is 1.5%.
- The principal (or the principal amount) is the initial amount of money deposited into the account. In this case, it is $500.
- The base, in the context of interest calculations, usually refers to the amount on which interest is calculated. In this case, it is also $500.