Daniel has a money market account with $1200. The bank offered him a special rate of 1.25% per month. How much money will Daniel help after first month
To calculate how much money Daniel will have after the first month, we need to determine the interest earned during that month.
The interest earned can be calculated by multiplying the principal amount by the interest rate:
Interest = Principal * Rate
= $1200 * 0.0125 (as 1.25% is equal to 0.0125 in decimal form)
= $15
Therefore, Daniel will have an additional $15 in his money market account after the first month.
Adding this interest to the principal amount, we can calculate the total amount of money Daniel will have:
Total amount = Principal + Interest
= $1200 + $15
= $1215
So, Daniel will have $1215 in his money market account after the first month.
To calculate how much money Daniel will have after the first month, we need to add the interest earned to the initial amount in his money market account.
The interest earned can be calculated by multiplying the initial amount by the interest rate for one month.
Interest earned = Initial amount * Interest rate
Plugging in the given values:
Interest earned = $1200 * 1.25%
Converting the percentage to decimal form:
Interest earned = $1200 * 0.0125
Calculating the interest:
Interest earned = $15
To find out how much money Daniel will have after the first month, we add the interest earned to the initial amount:
Total amount after first month = Initial amount + Interest earned
Total amount after first month = $1200 + $15
Total amount after first month = $1215
Therefore, Daniel will have $1215 in his money market account after the first month.
To calculate the amount of money Daniel will have after the first month, we need to add the interest earned to the initial amount of the money market account.
First, we need to calculate the amount of interest earned. We can do this by multiplying the initial amount ($1200) by the interest rate (1.25%) in decimal form (0.0125):
Interest earned = $1200 * 0.0125 = $15
Next, we need to add the interest earned to the initial amount:
Amount after the first month = $1200 + $15 = $1215
Therefore, Daniel will have $1215 after the first month.