Credit cards and Charge Accounts
What is a card that authorizes purchases on credit?
credit card
Find the new balance
previous balance = $332.64
finance charge = $5.64
new purchases $173.03 payment - $31.94
credit - $50
$429.37
What method does the store sometimes use to compute finance charges?
unpaid balance method
Most companies granting credit compute the finance charge using this method
average daily balance method
What is another type of credit account other than an credit card?
CHARGE ACCOUNT
Find the new balance:
previous $600 finance charge - $7.50
new purchase- $90 payments $100
$597.50
What is the formula for the unpaid balance method?
(3 levels)
unpaid balance= previous balance - payments+credits
finance charge = unpaid bal. x periodic rate
new bal. = unpaid bal. + fin. chg. + new purchases
What is the formula for calculating the average daily balance
avg. daily bal. = sum of daily balances / number of days
What lists all of the items you purchase and other transactions over a one-month period?
account statement
Find the new balance
previous $278.75 finance $4.18
new purchase -$35.85 Credits - $48
$270.78
Find the unpaid balance, finance charge and new balance.
periodic rate 1.5% previous balance -$600
payments & credits - $100 new purchases $70
A. unpaid balance $500
B. finance charge $7.50
C. new balance $577.50
How do you make the number 7 even without addition, subtraction, multiplication, or division?
This is the interest that the company charges to a credit account for not paying the total amount in full each month.
finance charge
What is the new balance?
previous $600 finance charge $9
new purchases $140 payments & credits $100
$649.00
Find the new balance
previous balance $1,280 payment $200
new purchases - $ 52 and $48
periodic rate 1.6%
$1,197.28
How many times can you subtract the number 5 from 25?
Once, because after you subtract it's not 25 anymore.
What is the formula to find your NEW Balance
New Balance =
previous + finance + new - payments and balance charge items credits
Andre's charge account has a previous balance of $1787.29. He made a $200 payment. The new purchases include $47.97, $49.28, $83.21 and $75.63 with a finance charge of $11.81 and a credit of $45.89.
What is the new balance?
$1,809.30
Find the new balance
previous $1,221.35 payment $300
new purchase $25.90 and $18.53
periodic rate 1.75%
$981.90
I am four times as old as my daughter. In 20 years time I shall be twice as old as her.
How old are we now?
I am 40 and my daughter is 10.