Financial Algebra © Cengage/South-Western Slide 1 BANKING SERVICES 3-1Checking Accounts 3-2Reconcile a Bank Statement 3-3Savings Accounts 3

Financial Algebra © Cengage/South-Western Slide 2 BANKING SERVICES 3-4Explore Compound Interest 3-5Compound Interest Formula 3-6Continuous Compounding 3-7Future Value of Investments 3-8Present Value of Investments 3

Financial Algebra © Cengage/South-Western Slide CHECKING ACCOUNTS Understand how checking accounts work. Complete a check register. OBJECTIVES

Slide 4 Canceled Check Check Clearing Check Register Checking Account Credit Debit Deposit Slip Direct Deposit Electronic Funds Transfer (EFT) Endorse Insufficient Funds Overdraft Protection Payee Key Terms

Slide 5 How do people gain access to money they keep in the bank? Define checking account. What are the responsibilities of having a checking account? What are the ways that account holders access the money in their checking accounts? Checks ATM withdraws Bank withdraws Electronic Banking

Slide 6 How do people gain access to money they keep in the bank? Define overdraft fees. Why might a person need overdraft protection? Is overdraft protection a form of a loan from a bank? Define check register. Why is it important to use a check register?

Slide 7 Example 1 Allison currently has a balance of $2,300 in her checking account. She deposits a $ paycheck, a $20 rebate check, and a personal check for $550 into her checking account. She wants to receive $200 in cash. Determine how much will she have in her account after the transaction?

Slide 8 Lizzy has a total of x dollars in her checking account. She makes a deposit of b dollars in cash and two checks each worth c dollars. She would like d dollars in cash from this transaction. She has enough to cover the cash received in her account. Express her new checking account balance after the transaction as an algebraic expression. CHECK YOUR UNDERSTANDING

Slide 9 Nick has a checking account with the Park Slope Savings Bank. He writes both paper and electronic checks. For each transaction, Nick enters the necessary information: check number, date, type of transaction, and amount. Instead of a check number, he uses E to indicate an electronic transaction. Determine the balance in his account after the Star Cable Co. check is written. Example 2

Slide 10 Nick writes a check to his friend James Sloan on May 11 for $ What should he write in the check register and what should the new balance be? CHECK YOUR UNDERSTANDING Would the final balance change if Nick had paid the cable bill before the wireless bill? Explain. EXTEND YOUR UNDERSTANDING

Slide 11 Determine the answers for the following questions (you must show ALL work): #2 #5 #6 #7 APPLICATIONS, p.120

Slide 12 Checking Account Check EFT Payee Check Clearing Deposit Slip Direct Deposit Endorse Canceled Insufficient funds Overdraft Protection Check Register Debit Credit Vocabulary Review:

Slide 13 Determine the answers for the following questions (you must show ALL work): #13 #14 #15 #16 APPLICATIONS,