Reading Financial Statements
How much did John Jones have in his account on the first day of the statement period?
$0.55
How much do you currently owe on this credit card?
$1,784.53
Before sending in your payment to the credit card company, you go to a bicycle store. Approximately, how much can you spend before going over the credit limit on your card?
$200
At the Penalty APR rate of 28.99% and a balance of about $1800, approximately how much interest would you owe in one month?
$40
Most employers will pay their employees by directly depositing their paycheck into their checking account. According to his checking account statement, John was paid ________________ every __________ .
$694.81, 2 weeks
In reviewing your account statement, you see a Balance Transfer Fee. Based on the information you see in the statement, what would be the fee if you transferred $3,000 from another credit card?
$90
Which checking account transactions will REDUCE John's checking account balance? (choose ALL correct answers)
-Bill payment -Mortgage payment -ATM with-drawl
Which of these transaction types INCREASE how much you owe the credit card company? (choose ALL correct answers)
-Cash Advances -Interest Charged -Purchases
Which of the following statements is TRUE (choose ALL correct answers)?
-If you pay only the minimum payment AND DO NOT make any additional charges on your card it will take you 10 years to pay off your card. -If you pay $9.00 more than your minimum payment of $53.00 (or $62.00), you will reduce the time to pay off your credit card debt to three years. -If you want to pay off your credit card debt faster you should pay more than the minimum payment every month.
As a result of the mortgage payment of $710.49... (choose ALL correct answers)
-John overdrew his account as the payment was greater than the balance he had available in the account -John was charged an Overdraft Fee of $5 by the bank -John has to repay the bank $72.47 to get his account back in balance
In reviewing your Summary Account Activity (#1), you notice FEES CHARGED of $69.45. Why was this fee assessed on your account? (choose ALL correct answers)
-Late Payment Fee -Balance Transfer Fee -Cash Advance Fee
What are examples of common checking account fees that you see on John's statement (choose ALL correct answers)
-Monthly fee -Overdraft fee -ATM (Interac) fee
Which statement(s) are true regarding Cheque No. - 409? (choose all correct answers)
-This cheque was written by John and paid to another person or business. -This cheque subtracted $100 from John's account.
What is the interest rate (or APR) on your account for anything you purchase after 5/10/12?
28.99%
It is April 19, 2012 and you suddenly remember that your credit card bill is due the next day. You have the money in your checking account to pay the bill in full. The mailing address for the credit card company is a few thousand miles away so you assume that it will take a few days for your check to arrive. What should you do?
Access your credit card account online to see if they have online options available that will get the payment to them by April 20th.
What is the mathematical formula that you would use to describe the financial activity on a bank statement?
Ending Balance = Previous Balance + Deposits - Withdrawals
John has two ATM transactions but only one of them has a fee (Interac). Why?
Interac is an out-of-network ATM and First Bank charges customers if they use out-of-network ATMs.
What is the impact of the Web Funds Transfer - From Savings that appears on John's statement?
John's Savings account balance declined by $50 and his Checking account balance increased by $50
You were charged interest of $6.31 for Purchases (near section 8). Why?
You had a balance of $535.07 from the previous month and only paid $450.00 so you didn't pay off your balance in full.
How frequently does John typically receive account statements from his bank?
monthly
