Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide CHECKING ACCOUNTS Understand how checking accounts work. Complete a check register. OBJECTIVES

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Warm-upWarm-up Examine the set of ordered pairs: (x, y): (1, 20), (2, 5), (3, 10), (4, 17), (5, 26), (6, 37) 1.Write a function y = f(x) for the set of ordered pairs. 2.Use your function to determine y when x = 11. Slide 2

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide 3 Checking account – an account at a bank that allows deposits, withdraws, and transfers Check – written order used to tell a bank to pay money to Electronic funds transfer (EFT) – electronic check Payee – receiver of the money Drawer – person that owns the account Check clearing – when enough money to cover check amount Deposit slip – way to make deposits Direct deposit – deposit checks directly into account Hold – put on checking account in the amount of cash received Endorse – sign your name on back Canceled – once money is paid, the check is cancelled Insufficient funds – not enough money to cover check Key Terms

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide 4 Overdraft protection – to protect you when there is not enough money in the account Automated teller machine (ATM) Personal identification number (PIN) – used with debit card Maintenance fee – sometime charged a monthly fee Interest – percentage paid based on money in account Single account – only 1 person can use Joint account – more than 1 is listed as owner Check register – where you can keep track of deposits, withdraws, transfers, and checks Debit – withdraws from account Credit – deposits to account Key Terms

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide 5 Key Terms

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide 6 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. How much will she have in her account after the transaction?

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide 7 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

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide 8 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. He uses E to indicate an electronic transaction. Determine the balance in his account after the Star Cable Co. check is written. Example 2

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide 9 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

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide 10 Would the final balance change if Nick had paid the cable bill before the wireless bill? Explain. EXTEND YOUR UNDERSTANDING

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. AssignmentAssignment Pages 120 – 122 #2 – 16 even Slide 11