financial algebra © cengage/south-western slide 1 4-5 credit card statement to identify and use the...
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Financial Algebra© Cengage/South-Western Slide 11
4-5
CREDIT CARD STATEMENT
To identify and use the various entries in a credit card statement.
OBJECTIVES
Financial Algebra© Cengage Learning/South-Western Slide 22
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
Key Terms
Financial Algebra© Cengage Learning/South-Western Slide 33
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.
Example 1Example 1
Financial Algebra© Cengage Learning/South-Western Slide 44
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.
Example 1Example 1
Financial Algebra© Cengage Learning/South-Western Slide 55
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.
CHECK YOUR UNDERSTANDING
Financial Algebra© Cengage Learning/South-Western Slide 66
Pascual has a credit line of $15,000 on his credit card. His summary looks as follows. How much available credit does Pascual have?
Example 2Example 2
Financial Algebra© Cengage Learning/South-Western Slide 77
Rhonda had a previous balance of $567.91 and made an on-time credit card payment of $567.91. She has a credit line of x dollars and made purchases totaling y dollars. Write an algebraic expression that represents her current available credit.
CHECK YOUR UNDERSTANDING
Financial Algebra© Cengage Learning/South-Western Slide 88
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.
Example 3Example 3
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