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Difficulty: Moderately Uncomplicated

Instructions

1 Discover the average quantity about money invested into the money market account. Manage this by means of getting the period on the consideration at the beginning of the year, adding the balance by the conclusion of the year, and in that case dividing via 2. To example, any money market account that is started the year with $1, website website website and ended the year by means of $1,8 internet site website in it has an normal balance of (1, website website web site+1,8 website website)/2 or $1,4 website web site.

2 Use a newspaper or the Internet to position the weekly attention rate settled on the money market account. With several significant town newspapers, the business area will own current money market rate quotes. Oftentimes this will be in a box labeled "Money Market Rates" or "Money Rates." For example, the rate could be website.45 percent in a granted week.

3 Change the rate to a decimal in dividing by 1 website website, or internet site.45% / 1 website internet site = website. website website45.

4 Multiply . website website45 times the average worth of the money market accounts to get 1,4 website website x . website website45 = 6.3, or $6.3 website. This money market account with any average balance regarding $1,4 web site website will make $6.3 internet site in interest each year.

References

BankRate? : Money Market Rates and Accounts This Matter: Money Market Instruments