Daniel has a money market account with $1200.The bank offered him a special rate of 5.25% per month.How much money will Daniel have after the first month
Maybe you mean 5.25/12 % per month?
0.0525/12 = 0.004375
every month multiply by 1.004375
Otherwise please let me know where this bank is :)
To calculate how much money Daniel will have after the first month, we need to use the formula for compound interest:
A = P(1 + r)^t
Where:
A = the amount of money Daniel will have after the first month
P = the principal amount (initial amount in the account) = $1200
r = the interest rate per period (monthly rate) = 5.25% = 0.0525
t = the number of periods (months) = 1
Plugging these values into the formula, we can calculate the amount of money Daniel will have after the first month:
A = 1200(1 + 0.0525)^1
A = 1200(1.0525)
A ≈ $1266
Therefore, Daniel will have approximately $1266 in his money market account after the first month.