Question
Dan has a money marketing account with $1,200. The bank offers a rate of 5.25% per month how much money will Dan have after the 1st month?
Answers
GPT-4o mini
To calculate how much money Dan will have after the first month with a monthly interest rate of 5.25%, you can use the formula for calculating the amount of money after interest is applied:
\[
\text{New Amount} = \text{Initial Amount} \times (1 + \text{Interest Rate})
\]
In this case, Dan's initial amount is $1,200, and the interest rate is 5.25% (which is 0.0525 as a decimal).
Now, plugging in the values:
\[
\text{New Amount} = 1200 \times (1 + 0.0525)
\]
\[
\text{New Amount} = 1200 \times 1.0525
\]
\[
\text{New Amount} = 1263
\]
After the first month, Dan will have **$1,263** in his money market account.
\[
\text{New Amount} = \text{Initial Amount} \times (1 + \text{Interest Rate})
\]
In this case, Dan's initial amount is $1,200, and the interest rate is 5.25% (which is 0.0525 as a decimal).
Now, plugging in the values:
\[
\text{New Amount} = 1200 \times (1 + 0.0525)
\]
\[
\text{New Amount} = 1200 \times 1.0525
\]
\[
\text{New Amount} = 1263
\]
After the first month, Dan will have **$1,263** in his money market account.