Consumers Chapter 7 Flashcard

Front

What does the formula I = prt calculate?

Back

Simple Interest

Front

What is the term for the amount of money invested or current balance?

Back

Principle

Front

What is the reconciled balance if the check register balance is $582.40, statement ending balance is $554.55, outstanding checks are $32.75 and $51.40, outstanding deposits are $105.50, and service charge is $6.50?

Back

$575.90

Front

What do you call checks that have not cleared your bank yet?

Back

Outstanding

Front

What is the new balance for $3,500 at 7% compounded semiannually for 2 years?

Back

$4,016.33

Front

Define Simple Interest.

Back

Simple Interest is calculated using the formula I = prt, where I is interest, p is principal, r is rate, and t is time.

Front

What is Compound Interest?

Back

Compound Interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Front

What is the difference between Simple Interest and Compound Interest?

Back

Simple Interest is calculated only on the principal amount, while Compound Interest is calculated on the principal plus any interest that has already been added.

Front

What is a Service Charge in banking?

Back

A Service Charge is a fee that a bank charges for account maintenance or transactions.

Front

What is an Outstanding Deposit?

Back

An Outstanding Deposit is a deposit that has been made but not yet reflected in the bank statement.