1. Entry Task There are 20 vocabulary words on p. 200 and 201
List them and their definitions in your notes

2. 4-5 CREDIT CARD STATEMENT
Banking
7/3/2018
4-5 CREDIT CARD STATEMENT
OBJECTIVES
To identify and use the various entries in a credit card statement.
Chapter 1

3. Key Terms billing cycle credit card statement account number
Banking
7/3/2018
Key Terms
billing cycle
credit card statement
account number
credit line
available credit
billing date
payment due date
transactions
debit/credit
previous balance
payments/credits
new purchases
late charge
finance charge
new balance
minimum payment
average daily balance
number of days in billing cycle
APR
monthly periodic rate
Chapter 1

4. Banking
7/3/2018
Chapter 1

5. Banking
7/3/2018
Example 1
The summary portion of Jane Sharp’s credit card statement shown is above.
a. Explain how the new purchases amount was determined.
b. Explain how the new balance amount was determined.
Chapter 1

6. CHECK YOUR UNDERSTANDING
Banking
7/3/2018
CHECK YOUR UNDERSTANDING
Suppose you create the following spreadsheet that models the statement summary and input the values in row 2. Write the spreadsheet formula to compute the new balance in cell F2.
Chapter 1

7. Banking
7/3/2018
Example 2
Pascual has a credit line of $15,000 on his credit card. His summary looks as follows. How much available credit does Pascual have?
– =
His new balance is $
His credit line is $15,000 so $15000 – $ leaves him $ in available credit
Chapter 1

8. Banking
7/3/2018
Example 3
Myrna is examining the summary section of her credit card statement. Myrna has checked all the entries on her bill and agrees with everything except the new balance. Determine where the error was made. =
Now subtract her payment of 100 and you should get
It appears her payment wasn’t credited.
Chapter 1

9. CHECK YOUR UNDERSTANDING
Banking
7/3/2018
CHECK YOUR UNDERSTANDING
Determine the error that was made using the following summary statement.
The new balance should be It appears the payment of $560 was recorded as $650.
Chapter 1

10. Homework
P. 204 #2-8, 10,11,12,17