MATH

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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 -

    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 -

    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 -

    I still do not understand.

  • MATH -

    Try to specific and tell us what exactly you do not understand

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