1 / 13

Account Statements

SECTION. 7-1. pp. 258-260. Account Statements. Calculate: new balance on a charge account. Section Objective. Key Words to Know. credit card (p. 258) A card that allows the cardholder to purchase goods and services on demand by presenting it. charge account (p. 258)

lucita
Download Presentation

Account Statements

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SECTION 7-1 pp. 258-260 Account Statements

  2. Calculate: • new balance on a charge account Section Objective

  3. Key Words to Know credit card (p. 258) A card that allows the cardholder to purchase goods and services on demand by presenting it. charge account (p. 258) An existing line of credit, often at a particular business.

  4. Key Words to Know account statement (p.258) A bank statement that shows all deposits, withdrawals, and interest credited to an account. finance charge (p. 258) Interest that is charged to a credit account if the account holder does not pay on time.

  5. Formula New Balance = Previous + Finance + New – (Payments + Credits) Balance Charge Purchases

  6. A Financial Gem? p. 258 What are the disadvantages of using credit cards?

  7. Example 1 See Figure 7.1 on page 259 of your textbook. Martha Palmer received this charge account statement on October 2. What is her new balance?

  8. Example 1 Answer Step: Find the new balance. Previous + Finance + New – (Payments + Credits) Balance Charge Purchases $332.64 + $5.64 + $173.03 – ($50.00 + $31.94) = $511.31 – $81.94 = $429.37

  9. Example 2 Dante Green’s charge account statement showed a previous balance of $157.80, a finance charge of $2.76, new purchases of $86.50 and $48.50, a payment of $40.00, and a credit of $37.85. What is the new balance?

  10. Example 2 Answer Step: Find the new balance. Previous + Finance + New – (Payments + Credits) Balance Charge Purchases $157.80 + $2.76 + ($86.50 + $48.50) – ($40.00 + $37.85) $295.56 – $77.85 = $217.17

  11. Practice 1 • Malcolm Turner’s charge account statement showed: • a previous balance of $270.49 • a finance charge of $4.05 • new purchases of $44.62 • a payment of $225.00 • What is the new balance?

  12. Practice 1 Answer $94.16

  13. END OF SECTION 7-1 Account Statements

More Related