Transcript Chapter One

Chapter Four
Review
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!!
Vocabulary Review
A way to find interest that uses a 365-day year
is ????.
a.
b.
c.
d.
ordinary interest method
exact interest method
average daily balance method
previous balance method
Correct!
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Vocabulary Review
Interest on a promissory note collected in
advance is ????.
a.
b.
c.
d.
annual percentage rate
periodic rate
bank discount
finance charge
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Vocabulary Review
Interest, fees, and other charges paid on an
installment loan or purchase is the ????.
a.
b.
c.
d.
finance charge
annual percentage rate
bank discount
periodic rate
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Vocabulary Review
The true rate of interest on an installment loan
is called ????.
a.
b.
c.
d.
principal
finance charge
bank discount
annual percentage rate
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Vocabulary Review
The rate of interest on a credit card balance is
called ????.
a.
b.
c.
d.
annual percentage rate
finance charge
periodic rate
bank discount
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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 ????.
a.
b.
c.
d.
previous balance method
adjusted balance method
ordinary interest method
average daily balance method
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Vocabulary Review
The amount charged for the use of money is
called ????.
a.
b.
c.
d.
finance charge
interest
rate of interest
bank discount
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Vocabulary Review
The amount that is borrowed is called the
????.
a.
b.
c.
d.
promissory note
cash advance
principal
down payment
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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?
a.
b.
c.
d.
$4,195.91
$2,985.66
$2,040.10
$980.56
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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?
a.
b.
c.
d.
$2,922.27
$112.70
$1,785.80
$1,609.01
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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?
a.
b.
c.
d.
$80.18
$323.56
$623.56
$454.42
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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?
a.
b.
c.
d.
$169.47
$269.47
$942.27
$47.20
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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.
a.
b.
c.
d.
$280.59
$280.59
$540.77
$410.77
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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.
a.
b.
c.
d.
$37.90
$1,244.46
$38.86
$643.50
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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.
a.
b.
c.
d.
$1,213.15
$17.53
$615.34
$614.52
Correct!
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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?
a.
b.
c.
d.
$7,200
$4,640
$4,032
$3,032
Correct!
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Numerical Review
On April 1, Preston McCord deposited $1,400 in a
passbook savings account that pays annual
interest of 3.2% compounded quarterly. If he
made no deposits or withdrawals in the account,
what interest could he earn by keeping his
money on deposit until October 1?
a.
b.
c.
d.
$1,848
$22.49
$1,444.80
$44.80
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Numerical Review
Sonya Lister’s 6-month CD pays 5.3% simple
interest. Her deposit to the CD was $4,500. At
the end of each 6-month period, Sonya
withdraws the interest earned and renews the
CD on its original terms. What total interest will
Sonya have earned at the end of one year?
a.
b.
c.
d.
$2,385
$238.50
$1,192.50
$477
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Numerical Review
Dale Lawrence had $80,000 on deposit in a six-month
CD paying 2.72% simple interest. At the end of
three months, Dale withdrew $4,000. The penalty
for early withdrawal of money from this CD is
one-month interest. What was the amount of the
penalty Dale had to pay?
a.
b.
c.
d.
$2,176
$9.07
$1,088
$108.80
Correct!
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You have completed the
review.
Good luck on the test!