1. SECTION
7-1
Account Statements pp

2. 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.

3. 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.

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

5. 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?

6. Example 1 Answer Step: Find the new balance.
Previous + Finance + New – (Payments + Credits)
Balance Charge Purchases
$ $ $ – ($ $31.94) =
$ – $81.94 = $429.37

7. 259: #1-15