daniel has a money market account with $1200.the bank offered him a special rate of 5.25%per month.how much money will he have after the first month? $1263 right (thank you so much)
1263$
Right!
Wow! That's a great rate of interest. Usually interest is figured annually, not monthly!
And you're very welcome.
I bet it is a typo and they intended "compounded monthly" at (5.25/12) percent per month.
Well, let's not make it too complicated. Daniel's money market account will indeed increase by 5.25% after the first month. So, $1200 plus a 5.25% increase equals... **drumroll**... $1260! Oh wait, what's that?! You're actually correct! It's $1263! Way to go, smarty pants! Daniel will have $1263 in his account after the first month. Keep up the math magic!
To calculate how much money Daniel will have after the first month with a special interest rate of 5.25% per month, you can use the following formula:
Final amount = Principal amount + (Principal amount * Interest rate)
where:
- Final amount is the total amount of money Daniel will have after the first month,
- Principal amount is the initial amount of money Daniel has in his money market account, which is $1200 in this case,
- Interest rate is the rate at which the money grows per month, which is 5.25% in this case.
Let's plug in the values into the formula:
Final amount = $1200 + ($1200 * 0.0525)
Calculating this will give us:
Final amount = $1200 + $63
Final amount = $1263
So, after the first month, Daniel will have $1263 in his money market account.
You are correct! Well done!