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Financial Algebra © Cengage/South-Western Slide 1 4-5 CREDIT CARD STATEMENT To identify and use the various entries in a credit card statement. OBJECTIVES
Financial Algebra © Cengage Learning/South-Western Slide 2 billing cycle credit card statement account number credit line available credit billing date payment due date transactions debit/credit previous balance payments/credits new purchases late charge finance charge new balance minimum payment average daily balance number of days in billing cycle APR monthly periodic rate Key Terms
Financial Algebra © Cengage Learning/South-Western Slide 3 The summary portion of Jane Sharp ’ s credit card statement shown is above. a. Explain how the new purchases amount was determined. b. Explain how the new balance amount was determined. Example 1
Financial Algebra © Cengage Learning/South-Western Slide 4 The summary portion of Jane Sharp ’ s credit card statement shown is above. a. Explain how the new purchases amount was determined. b. Explain how the new balance amount was determined. Example 1
Financial Algebra © Cengage Learning/South-Western Slide 5 Suppose you create the following spreadsheet that models the statement summary and input the values in row 2. Write the spreadsheet formula to compute the new balance in cell F2. CHECK YOUR UNDERSTANDING
Financial Algebra © Cengage Learning/South-Western Slide 6 Pascual has a credit line of $15,000 on his credit card. His summary looks as follows. How much available credit does Pascual have? Example 2
Financial Algebra © Cengage Learning/South-Western Slide 7 Rhonda had a previous balance of $567.91 and made an on-time credit card payment of $567.91. She has a credit line of x dollars and made purchases totaling y dollars. Write an algebraic expression that represents her current available credit. CHECK YOUR UNDERSTANDING
Financial Algebra © Cengage Learning/South-Western Slide 8 Myrna is examining the summary section of her credit card statement. Myrna has checked all the entries on her bill and agrees with everything except the new balance. Determine where the error was made. Example 3
Financial Algebra © Cengage/South-Western Slide 1 CONSUMER CREDIT 4-1Introduction to Consumer Credit 4-2Loans 4-3Loan Calculations and Regression 4-4Credit.
Financial Algebra © Cengage/South-Western Slide AVERAGE DAILY BALANCE Calculate the average daily balance using the credit calendar. Calculate the.
Financial Algebra © Cengage/South-Western Slide CREDIT CARDS Become familiar with the basic vocabulary of credit cards. Compute an average daily.
Chapter 4, Section 2 Credit Card Finance Charges.
Reading a Credit Card Statement
Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide RECONCILE A BANK STATEMENT Reconcile a checking account with a bank statement.
OBJECTIVES 4-2 LOANS Read monthly payments from a table.
B13: I can find the new balance on a credit card statement.
1. Financial mathematics Compare differences between credit cards and debit cards Calculate the simple interest for one billing cycle Express a percentage.
Analyzing Credit. Objective: You will use the Daily average method to determine the balance of a credit card, and will calculate the Effective Annual.
7.4.2.G1 © Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding Your Credit Card Essentials.
Reconcile a Bank Statement
Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide CHECKING ACCOUNTS Understand how checking accounts work. Complete a check register.
Credit Cards. What are the benefits? No need to carry large sums of cash Helps credit rating Have access to a written record of all purchases Rewards.
Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide EXPLORE COMPOUND INTEREST Understand the concept of getting interest on your.
Finance Charge: Unpaid Balance Method pp SECTION.
Prepared by Johnny Howard © 2015 South-Western, a part of Cengage Learning.
Prepared by Charlie Cook The University of West Alabama © 2009 South-Western, a part of Cengage Learning Installment Purchases: Assignments Chapter 14.
Financial Algebra © Cengage/South-Western Slide INTRODUCTION TO CONSUMER CREDIT Become familiar with the basic vocabulary of credit terms. Become.
Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 1 Chapter 12 Business and Consumer Loans Section 1 Open-End Credit and Charge Cards.
Consumer Loans © 2010 Pearson Education, Inc. All rights reserved.Section 9.3, Slide Determine payments for an add- on loan. Compute finance charges.
3 BANKING SERVICES 3-4 Explore Compound Interest
Understanding Cash, Credit & Checks Economics in Action.
Posting Journal Entries to General Ledger Accounts Making Accounting Relevant Every business completes business transactions daily. Think about the various.
OBJECTIVES 8-4 PURCHASE A HOME Estimate closing costs.
Section 1.1, Slide 1 Copyright © 2014, 2010, 2007 Pearson Education, Inc. Section 8.3, Slide 1 Consumer Mathematics The Mathematics of Everyday Life 8.
Exponential Functions – Personal Finance Basic Formula for Compound Interest: A = P(1 + r/n) nt » A = Final Amount » P = Beginning Amount » r = rate –
Installment Buying and Credit Cards. Simple Finance Charges The finance charge is the amount of the purchase in excess of the selling price. Barry wants.
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family.
Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide COMPOUND INTEREST FORMULA Become familiar with the derivation of the compound.
Chapter © 2010 South-Western, Cengage Learning Responsibilities and Costs of Credit Using Credit Wisely Costs of Credit 18.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 11-1 Posting to an Accounts Payable Ledger Ledgers and controlling accounts Accounts.
Responsibilities and Costs of Credit
Financial Algebra © Cengage/South-Western Slide 1 BANKING SERVICES 3-1Checking Accounts 3-2Reconcile a Bank Statement 3-3Savings Accounts 3.
Credit Cards. 88 million American households have credit cards Average credit card debt is $9,600 per household.
4-3 LOAN CALCULATIONS AND REGRESSION
© 2015 Cengage Learning. All Rights Reserved. Learning Objectives © 2015 Cengage Learning. All Rights Reserved. LO6 Journalize transactions for installment.
SECTION 4-4 pp Bank Statements.
3-5 COMPOUND INTEREST FORMULA
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 11-1 Posting to an Accounts Payable Ledger.
HOW CREDIT CARDS WORK What you need to know about credit cards- including what credit cards companies can and can’t do, and what information they have.
Bennie Waller – Longwood University Credit Cards Bennie Waller Longwood University 201 High Street Farmville, VA Much of this material from fefe.arizona.edu.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 11-3 Posting from Journals to a General Ledger.
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