Account Statements pp. 258-2607-1SECTIONSECTION

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credit card (p. 258)

A card that allows the cardholder to purchase goods and services on demand by presenting it.

charge account (p. 258)

An existing line of credit, often at a particular business.

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account statement (p.258)

A bank statement that shows all deposits, withdrawals, and interest credited to an account.

finance charge (p. 258)

Interest that is charged to a credit account if the account holder does not pay on time.

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New Balance =

Previous + Finance + New – (Payments + Credits)Balance Charge Purchases

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See Figure 7.1 on page 259 of your textbook.

Martha Palmer received this charge account statement on October 2.

What is her new balance?

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Step: Find the new balance.

Previous + Finance + New – (Payments + Credits)Balance Charge Purchases

$332.64 + $5.64 + $173.03 – ($50.00 + $31.94) =

$511.31 – $81.94 = $429.37

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259: #1-15259: #1-15