1. Irene has a savings account and a chequing account at a bank. She also carries...
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1. Irene has a savings account and a chequing account at a bank. She also carries a credit card issued by the bank. [4 marks] a) What interest rate does her chequing account likely pay? (Circle one answer.) 0% 0.5% 7% 18.9% 28.8% b) What interest rate does her savings account likely pay? (Circle one answer.) 0% 0.5% 7% 18.9% 28.8% c) What interest rate does her bank credit card likely charge for overdue accounts? (Circle one answer.) 0.5% 7% 18.9% d) What interest rate does her department store credit card likely charge for overdue accounts? (Circle one answer.) 0.5% 7% 0% 0% Pay to the Onder of 18.9% 2. While in Montréal visiting friends, Irene got a speeding ticket. The next week, she wrote a cheque payable to the "City of Montréal" in the amount of $93.50. Complete the cheque below using June 4 of this year as the date. Place your signature in place of Irene's. [4 marks] EMO ga selce to be babara ed Gabasabababas GO GO babd be Preses 28.8% Due 28.8% Despregagenprespaparazs 100 Dulles SP5 Name: 3. To manage her accounts and to check her balances, Irene uses the Internet. She does not keep paper records. a) Below are Irene's transactions for the first part of June. Calculate the missing amounts in the balance column. [4 marks] Cheque number Date 82 83 84 85 June 1 June 2 June 4 June 5 June 7 June 9 June 10 June 13 June 14 June 15 Description Rent Cash Pay Ticket (Montréal) Gas Groceries Credit card Pay Dr. T Car Insurance Dr. T Groceries Date: Shoes Cash Payment or withdrawal (-) 640 60 93.50 55 88.20 150 30 104.50 30 79.93 56.99 60 ✓ Deposit or interest (+) 427.18 377.60 Balance 714.80 b) What is the date of Irene's next pay cheque? [1 mark] c) On June 15, when Irene withdrew the $60 from her account, the ATM receipt indicated a balance of $194.96. Calculate the difference between the amount on the ATM receipt and your calculation for her current balance. [1 mark] d) Give an explanation for this difference. [1 mark] Name: 4. Below is part of Irene's latest credit card statement. 5/2 5/10 5/14 Previous Balance Payments Overdue Balance Interest Charged New Purchases Date: STATEMENT FROM April 15 to May 14 Cliff's Car Repairs 148.00 payment, thank you -150.00 interest 6.82 432.90 -150.00 282.90 6.82 148.00 New Balance Minimum Due Due Date Annual interest rate Available Credit 24.00 June 12 18.9% 1546.38 a) State the three items that are added together to create the New Balance. [3 marks] and b) Calculate Irene's New Balance. Place your answer on the credit card statement. [1 mark] 5. a) Given what you know about Irene's finances, describe her purchasing power, that is, her ability to buy what she wants when she wants. [1 mark] b) Advise Irene as to how she can improve her current financial position. [2 marks] 1. Irene has a savings account and a chequing account at a bank. She also carries a credit card issued by the bank. [4 marks] a) What interest rate does her chequing account likely pay? (Circle one answer.) 0% 0.5% 7% 18.9% 28.8% b) What interest rate does her savings account likely pay? (Circle one answer.) 0% 0.5% 7% 18.9% 28.8% c) What interest rate does her bank credit card likely charge for overdue accounts? (Circle one answer.) 0.5% 7% 18.9% d) What interest rate does her department store credit card likely charge for overdue accounts? (Circle one answer.) 0.5% 7% 0% 0% Pay to the Onder of 18.9% 2. While in Montréal visiting friends, Irene got a speeding ticket. The next week, she wrote a cheque payable to the "City of Montréal" in the amount of $93.50. Complete the cheque below using June 4 of this year as the date. Place your signature in place of Irene's. [4 marks] EMO ga selce to be babara ed Gabasabababas GO GO babd be Preses 28.8% Due 28.8% Despregagenprespaparazs 100 Dulles SP5 Name: 3. To manage her accounts and to check her balances, Irene uses the Internet. She does not keep paper records. a) Below are Irene's transactions for the first part of June. Calculate the missing amounts in the balance column. [4 marks] Cheque number Date 82 83 84 85 June 1 June 2 June 4 June 5 June 7 June 9 June 10 June 13 June 14 June 15 Description Rent Cash Pay Ticket (Montréal) Gas Groceries Credit card Pay Dr. T Car Insurance Dr. T Groceries Date: Shoes Cash Payment or withdrawal (-) 640 60 93.50 55 88.20 150 30 104.50 30 79.93 56.99 60 ✓ Deposit or interest (+) 427.18 377.60 Balance 714.80 b) What is the date of Irene's next pay cheque? [1 mark] c) On June 15, when Irene withdrew the $60 from her account, the ATM receipt indicated a balance of $194.96. Calculate the difference between the amount on the ATM receipt and your calculation for her current balance. [1 mark] d) Give an explanation for this difference. [1 mark] Name: 4. Below is part of Irene's latest credit card statement. 5/2 5/10 5/14 Previous Balance Payments Overdue Balance Interest Charged New Purchases Date: STATEMENT FROM April 15 to May 14 Cliff's Car Repairs 148.00 payment, thank you -150.00 interest 6.82 432.90 -150.00 282.90 6.82 148.00 New Balance Minimum Due Due Date Annual interest rate Available Credit 24.00 June 12 18.9% 1546.38 a) State the three items that are added together to create the New Balance. [3 marks] and b) Calculate Irene's New Balance. Place your answer on the credit card statement. [1 mark] 5. a) Given what you know about Irene's finances, describe her purchasing power, that is, her ability to buy what she wants when she wants. [1 mark] b) Advise Irene as to how she can improve her current financial position. [2 marks]
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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