DANIEL HAS A MONEY MARKET ACCOUNT WITH %1,200. THE BANK OFFERED HIM A SPECIAL RATE OF 5.25% PER MONTH. HOW MUCH MONEY WILL DANIEL HAVE AFTER THE FIRST MONTH?

If he has $1,200 in the account >>

1,200 * 1.0525 = ?

1,263

Right. $1,263

To calculate how much money Daniel will have after the first month, we will use the formula for calculating compound interest:

Future Value = Principal * (1 + Rate/100)^Time

In this case, the Principal (P) is $1,200, the Rate (R) is 5.25%, and the Time (T) is 1 month.

First, we need to convert the rate from a percentage to a decimal by dividing it by 100:

Rate = 5.25/100 = 0.0525

Now we can substitute the values into the formula:

Future Value = $1,200 * (1 + 0.0525)^1

Calculating:

Future Value = $1,200 * (1.0525)^1
= $1,200 * 1.0525
= $1,263

Therefore, Daniel will have $1,263 after the first month.