Chapter Four

1. Chapter Four Review

2. Directions • Answers the questions the best you can. • Click on the answer you think is correct. • If you are right, you will need to click anywhere on the slide to move to the next question. • If you are wrong, you will need to click anywhere on the slide to move back to the question and try again. • If you find any problems with the presentation, please let me know so it can be corrected. GOOD LUCK!!

3. Vocabulary Review A way to find interest that uses a 365-day year is ????. • ordinary interest method • exact interest method • average daily balance method • previous balance method

4. Correct! Click anywhere to move to the next slide.

5. That is incorrect. Click anywhere to go to back until you get the correct answer.

6. Vocabulary Review Interest on a promissory note collected in advance is ????. • annual percentage rate • periodic rate • bank discount • finance charge

7. Correct! Click anywhere to move to the next slide.

8. That is incorrect. Click anywhere to go to back until you get the correct answer.

9. Vocabulary Review Interest, fees, and other charges paid on an installment loan or purchase is the ????. • finance charge • annual percentage rate • bank discount • periodic rate

10. Correct! Click anywhere to move to the next slide.

11. That is incorrect. Click anywhere to go to back until you get the correct answer.

12. Vocabulary Review The true rate of interest on an installment loan is called ????. • principal • finance charge • bank discount • annual percentage rate

13. Correct! Click anywhere to move to the next slide.

14. That is incorrect. Click anywhere to go to back until you get the correct answer.

15. Vocabulary Review The rate of interest on a credit card balance is called ????. • annual percentage rate • finance charge • periodic rate • bank discount

16. Correct! Click anywhere to move to the next slide.

17. That is incorrect. Click anywhere to go to back until you get the correct answer.

18. Vocabulary Review When you apply the periodic rate to the balance from the last statement and ignore purchases, fees, and payments from the current period, you are using the ????. • previous balance method • adjusted balance method • ordinary interest method • average daily balance method

19. Correct! Click anywhere to move to the next slide.

20. That is incorrect. Click anywhere to go to back until you get the correct answer.

21. Vocabulary Review The amount charged for the use of money is called ????. • finance charge • interest • rate of interest • bank discount

22. Correct! Click anywhere to move to the next slide.

23. That is incorrect. Click anywhere to go to back until you get the correct answer.

24. Vocabulary Review The amount that is borrowed is called the ????. • promissory note • cash advance • principal • down payment

25. Correct! Click anywhere to move to the next slide.

26. That is incorrect. Click anywhere to go to back until you get the correct answer.

27. Numerical Review Justin Nucci listed these items on his deposit slip: (bills) 9 one-hundreds, 27 fifties, 83 fives, 141 ones; (coins) 13 quarters, 117 nickels; (checks) $317.94, $57.89, $527.24, $77.49. He received cash back of 30 twenties and 11 tens. What total deposit did he make? • $4,195.91 • $2,985.66 • $2,040.10 • $980.56

28. Correct! Click anywhere to move to the next slide.

29. That is incorrect. Click anywhere to go to back until you get the correct answer.

30. Numerical Review Zora Omar had a balance of $1,189.17 in her checking account. She wrote checks for $62.41, $224.14, $12.92, and $357.16. Her deposits were $197.34 and $879.13. What was Zora’s new bank balance? • $2,922.27 • $112.70 • $1,785.80 • $1,609.01

31. Correct! Click anywhere to move to the next slide.

32. That is incorrect. Click anywhere to go to back until you get the correct answer.

33. Numerical Review At the start of the day, Grade Williams’ checking account had a $201.87 balance. She used her debit card to pay $56.12 for groceries and $28.45 for cleaning. Grace then transferred $150 to her checking account from savings using her bank’s ATM. She also directed her bank to transfer funds electronically from her checking account to pay a charge account bill of $187.12. What was the balance of Grace’s checking account at the end of the day? • $80.18 • $323.56 • $623.56 • $454.42

34. Correct! Click anywhere to move to the next slide.

35. That is incorrect. Click anywhere to go to back until you get the correct answer.

36. Numerical Review Basil Tomlin’s online checking account had a balance of $371.07. The balance did not include a direct deposit of $672.80 that will be transferred to the checking account by Basil’s employer at 11:00 a.m. Basil’s bank will automatically deduct a house payment of $720 at the end of the business day. Basil plans to make online payments for $34.85, $90.29, and $368.20. How much money does Basil need to transfer to compete these transactions and still have a balance of $100? • $169.47 • $269.47 • $942.27 • $47.20

37. Correct! Click anywhere to move to the next slide.

38. That is incorrect. Click anywhere to go to back until you get the correct answer.

39. Numerical Review Giselle Mulroon’s bank statement shows a balance of $539.22. Checks outstanding were #841 for $29.67, #843 for $89.02, and #844 for $9.76. A $130 deposit was outstanding. Reconcile Giselle’s bank statement. • $280.59 • $280.59 • $540.77 • $410.77

40. Correct! Click anywhere to move to the next slide.

41. That is incorrect. Click anywhere to go to back until you get the correct answer.

42. Numerical Review Elva Mayberry’s check register balance was $641.18. Her bank statement listed several items that did not appear in Elva’s check register. These include interest earned of $0.48, a service charge of $2.80, and two ATM withdrawals of $300 each. Reconcile Elva’s check register. • $37.90 • $1,244.46 • $38.86 • $643.50

43. Correct! Click anywhere to move to the next slide.

44. That is incorrect. Click anywhere to go to back until you get the correct answer.

45. Numerical Review Henry Sokol’s bank statement balance on June 30 was $845.43. His check register balance was $247.62. His comparison of the two records showed a check for $85 was recorded twice in the register, a check for $138.11 was recorded as $183.11, and an ATM deposit of $368 and a debit card purchase for $81.10 were not recorded in the register. Also, an ATM withdrawal of $50 and interest earned of $0.82 were not recorded. Three checks were outstanding: $191.22; $23.87; $15. Reconcile Henry’s bank statement and check register. • $1,213.15 • $17.53 • $615.34 • $614.52

46. Correct! Click anywhere to move to the next slide.

47. That is incorrect. Click anywhere to go to back until you get the correct answer.

48. Numerical Review Bob Rowinski made a $4,000 deposit to a savings account paying 1.6% annual interest compounded semiannually. If he kept the money on deposit for 6 months, what would his account balance be after the interest payment is made? • $7,200 • $4,640 • $4,032 • $3,032

49. Correct! Click anywhere to move to the next slide.

50. That is incorrect. Click anywhere to go to back until you get the correct answer.