Chapter 4: Banking Basics Part 3: ProjectBased Activity Inga Bitterrnan is a business student at a university where she also works as a graduate assistant. She just recewed her rst paycheck. Inga decided to open a checking account at a credit union that sen'es university employees. There is no monthly service charge on this account: although there will be a $35.00 fee if the account is overdrawn. 1. Inga makes an initial deposit on October l__ which includes a paycheck for 535938: a check that was a birthday gift for folGHQ: cash totaling 525.00: and coins totaling 54.738. Ill-'hat is Luigg net deposit? Answer: 2. Inga transactions during the rest of October are shown in the following table. Recreate the checking account register shown in the example that follows and record Inga's October 1 opening deposit in the checking account register. Then record her transactions for the rest of the month. Calculate the balance after each transaction. Date Transaction October 2 Withdrew S80hot cash from an ATM October 3 Wrote check #100 in Fast Phone to pay phone bill of $47.64 October 4 Deposited birthday gift of $75.00 October 10 Wrote check #lul in University Hook Store for $211.74 October 15 Deposited payroll check of $139.78 October 16 Wrote check #102 for $60.00 for football tickets October 17 Deposited $100 00 rebate check from computer purchase October 19 Wrote check #103 in Super Food Man for groceries for $19.43 October 22 Withdrew $40.00 cash from ATM October 25 Withdrew $40.00 cash from ATM October 30 Wrote check #104 in Community Fund for charitable contribution for $25.00 October 30 Wrote check #105 in First Bank for car payment of $229.00 October 31 Deposited payroll check of $139.78 Example checking register. NUMBER DATE DESCRIPTION PAYMENTS Li DEPOSITS BALANCE Cleaning Impact Answer:3. Inga receives her monthly statement from the credit union, and it shows a statement balance of $455.53 as of October 31. Does this amount match the October 30 balance in her checking account register? Should she be surprised if there is a difference! Answer: 4. Inga reviews her monthly credit union statement and finds that both checks she wrote on October 30 did not clear. Her paycheck deposit on October 31 also does not yet appear on her credit union statement. Calculate the adjusted balance from her credit union statement. Answer: 5. Can you reconcile the balances in Inga's checking account register and the credit union statement? Answer: G. Inga currently has $10,000 deposited in a savings account at Hometown Hank where it earns 2.5%% annual interest rate compounded quarterly- However, the credit union offers her a 3.5%% annual interest ric compounded quarterly. How much will her deposit be worth after three years at each place? Do you think it will be worth Inga's effort in transfer her savings from Hometown Bank to the credit union?