1. Business Mathematics Seminar 2

2. Round to a Specific Decimal Place 1. Find the digit in the specified place. 2. Look at the next digit to the right. –If this digit is less than 5, eliminate it and all digits to its right. –If the digit is 5 or more, add 1 to the digit in the specified place, and eliminate all digits to its right.

3. Try these examples Round to the nearest tenth 12.456 31,343.387 346.2778

4. 3.2 Operations with Decimals Add and subtract decimals Multiply decimals Divide decimals 4.685 + 6.8 = ?

5. Try these examples. (Without using your calculator) 6. 485 + 1.4 + 0.8 + 11.999 = 10.008 – 7.6 =.976 -.04217 =

6. Try these examples (Without using your calculator) 1.7 x.08 = 4.67 x 5.004 =.01 x 1.001=

7. Try this word problem Jill wants to buy a bottle of detergent. If a 100-ounce bottle costs $6.49 and a 50- ounce bottle costs $3.99, which would be the better buy on a cost per ounce basis? What are those amounts? Answer:

8. Try these examples Convert 1/52 to a decimal. Convert 3/18 to a decimal. Convert 2/36 to a decimal.

9. Make Account Transactions Various checking account forms or records are needed to provide written documentation of the funds that flow into and out of the account. A transaction is a banking activity that changes the amount of money in a bank account. Funds going into the account are deposits and are recorded as a credit to the account. A deposit ticket is needed to support the transaction.

10. Make an account deposit 1.Record the date. 2.Enter the amount of currency and/or coins being deposited. 3.List the amount of each check to be deposited including an identifying name or company. 4.Add the currency, coins and checks. 5.If the deposit is going into a personal account and you need “cash back,” indicate the amount and sign. Subtract from the total. 6.Record the net deposit.

11. If there is a mistake in the deposit The bank will issue a bank memo. An increase in the balance (or in your favor) is called a credit memo. A decrease in the balance (or in the bank’s favor) is called a debit memo.

12. Taking money out of the account A withdrawal is a transaction which reduces the amount of funds in the account. These transactions are called debits. One bank record for withdrawals is a check or bank draft. Another type of debit is through the use of a debit card to pay for goods and services. Withdrawing funds from an ATM will also result in a debit to the account.

13. Identify the elements of a check

14. Endorsements Simple endorsement: the payee signs or stamps the bank of the check to deposit the amount in an account or to cash the check. Banks will require payees who are not account holders to present identification before cashing a check from their bank. Account holders will be required to sign the check and also record the account number on the back of the check.

15. Key terms Enrollment: a signature, stamp or electronic imprint on the back of a check that authorizes payment in cash or directs payment to a third party or account. Restricted endorsement: a type of endorsement that reassigns the check to a different payee or directs the check to be deposited in a specified account.

16. Restricted endorsements The original payee writes “pay to the order of,” lists the name of the new payee and signs the check. Another type of restricted endorsement is using the phrase “for deposit only” and listing the account number without actually signing or endorsing the check. These measures are intended to provide greater security when handling checks.

17. Key terms Bank statement: an account record provided by the bank periodically designed to match your records to the bank’s records. Service charge: a fee the bank charges for maintaining the checking account or for other banking services. Returned check: deposited check that was returned because the maker’s account did not have sufficient funds.

18. Returned check fee: a fee the bank charges the depositor for returned checks. Non-sufficient fund fee: fee charged to the account holder when a check is written for which there are not sufficient funds. Note: when a check is returned NSF, there are sometimes two penalties: one the bank charges and another by the payee who was unable to collect the money in a timely manner. Key terms

19. Outstanding checks: Checks that have been written, but have not yet been posted to the maker’s account. Outstanding deposits: deposits that have been made, but have not yet been posted to the maker’s account. When reconciling your account, be sure to note any bank fees (for returned checks, service charges, etc.) on your account register. Key terms

20. Bank statement