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?

1 answer

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.