The document discusses various credit card concepts including:
1) Credit cards allow consumers to purchase items now and pay later, but users should only charge what they can pay off to avoid interest charges.
2) Interest charges are calculated based on the average daily balance, which is the sum of the daily balances divided by the number of days in the billing period. Any partial payments before the due date can help reduce this balance and subsequent interest charges.
3) If a credit card user does not pay their full statement balance by the due date, the card issuer may charge interest on purchases back to the original transaction date, even if the user typically pays on time to avoid interest charges.
This document contains details from a student's credit card homework assignments, including examples of calculating average daily balances, finance charges using different credit card payment methods, and credit card interest rates. The document provides daily transaction details to demonstrate how to calculate average daily balances over a billing period and the resulting finance charges. It also includes practice problems for students to calculate average daily balances, finance charges, and ending balances based on provided credit card purchase and payment amounts over a specified time period.
Creating a budget is Part 2 of the 6-part Money Matters class, created by the Athens-Clarke County Library. Money Matters is part of Smart investing @ your library®, and is brought to you by a joint grant from the American Library Association and FINRA, the Financial Regulatory Authority Foundation.
The document analyzes accounts receivable for various customers as of December 31, 2001. It shows amounts that are not yet due, 1-30 days past due, 31-60 days past due, and over 90 days past due. It also estimates uncollectible accounts based on the age of the receivables. An alternative income statement approach to estimating credit losses is presented, along with examples of accounting entries. Metrics for evaluating accounts receivable such as accounts receivable turnover and average days to collect accounts receivable are calculated.
This document provides information about home finance, including mortgages, home insurance, property taxes, and tenants insurance. It discusses different types of mortgages and how to calculate mortgage payments. It also explains how home insurance premiums are determined based on factors like replacement cost, location, coverage, and deductible. Tables are provided as examples to demonstrate how to calculate insurance premiums for tenants and homeowners. The document also discusses how property taxes are used by municipalities to fund services and provides an example of a property tax statement.
The document discusses bank reconciliation statements. It provides examples to illustrate how to prepare a bank reconciliation statement by identifying differences between a cash book balance and bank statement balance. The key reasons for differences are timing of transactions and errors. Differences are reconciled by adding or subtracting items to calculate the correct balance. Worked examples are provided to show how to identify adjustments needed in the cash book and prepare the bank reconciliation statement.
A deed of gift is a legal document that establishes a transfer of money or property from one person to another as a gift with no expectation of repayment. It provides clarity about the intentions of the gift to avoid any potential future disputes over whether the transfer was a loan or gift. A deed of gift is particularly useful when gifting money to help adult children or transferring personal assets to a spouse to protect them if the business owner is sued. It can also help document gifts when distributing an estate to ensure all heirs are treated as intended by the deceased.
Here is the bank reconciliation statement presented to show the overdraft balance:
- Begin with the overdraft balance per the cash book
- Add any items that increase the overdraft
- Deduct any items that decrease the overdraft
- End with the overdraft balance per the bank statement
This presentation clearly shows the bank overdraft position.
1. The document discusses probability calculations for rolling dice. It calculates the probability of rolling certain numbers, like numbers divisible by 2, 3, 4, 6, etc. when rolling one or three dice.
2. It notices a pattern in the calculations - the probability is the number of outcomes divided by the total number of possible outcomes. It expresses this as a formula.
3. The formula is shown to work for some numbers like 8 when rolling 3 dice, but not others like 10, as there are no outcomes divisible by 10. The number must result in a whole number and be between 1 and the total number of outcomes.
This document contains details from a student's credit card homework assignments, including examples of calculating average daily balances, finance charges using different credit card payment methods, and credit card interest rates. The document provides daily transaction details to demonstrate how to calculate average daily balances over a billing period and the resulting finance charges. It also includes practice problems for students to calculate average daily balances, finance charges, and ending balances based on provided credit card purchase and payment amounts over a specified time period.
Creating a budget is Part 2 of the 6-part Money Matters class, created by the Athens-Clarke County Library. Money Matters is part of Smart investing @ your library®, and is brought to you by a joint grant from the American Library Association and FINRA, the Financial Regulatory Authority Foundation.
The document analyzes accounts receivable for various customers as of December 31, 2001. It shows amounts that are not yet due, 1-30 days past due, 31-60 days past due, and over 90 days past due. It also estimates uncollectible accounts based on the age of the receivables. An alternative income statement approach to estimating credit losses is presented, along with examples of accounting entries. Metrics for evaluating accounts receivable such as accounts receivable turnover and average days to collect accounts receivable are calculated.
This document provides information about home finance, including mortgages, home insurance, property taxes, and tenants insurance. It discusses different types of mortgages and how to calculate mortgage payments. It also explains how home insurance premiums are determined based on factors like replacement cost, location, coverage, and deductible. Tables are provided as examples to demonstrate how to calculate insurance premiums for tenants and homeowners. The document also discusses how property taxes are used by municipalities to fund services and provides an example of a property tax statement.
The document discusses bank reconciliation statements. It provides examples to illustrate how to prepare a bank reconciliation statement by identifying differences between a cash book balance and bank statement balance. The key reasons for differences are timing of transactions and errors. Differences are reconciled by adding or subtracting items to calculate the correct balance. Worked examples are provided to show how to identify adjustments needed in the cash book and prepare the bank reconciliation statement.
A deed of gift is a legal document that establishes a transfer of money or property from one person to another as a gift with no expectation of repayment. It provides clarity about the intentions of the gift to avoid any potential future disputes over whether the transfer was a loan or gift. A deed of gift is particularly useful when gifting money to help adult children or transferring personal assets to a spouse to protect them if the business owner is sued. It can also help document gifts when distributing an estate to ensure all heirs are treated as intended by the deceased.
Here is the bank reconciliation statement presented to show the overdraft balance:
- Begin with the overdraft balance per the cash book
- Add any items that increase the overdraft
- Deduct any items that decrease the overdraft
- End with the overdraft balance per the bank statement
This presentation clearly shows the bank overdraft position.
1. The document discusses probability calculations for rolling dice. It calculates the probability of rolling certain numbers, like numbers divisible by 2, 3, 4, 6, etc. when rolling one or three dice.
2. It notices a pattern in the calculations - the probability is the number of outcomes divided by the total number of possible outcomes. It expresses this as a formula.
3. The formula is shown to work for some numbers like 8 when rolling 3 dice, but not others like 10, as there are no outcomes divisible by 10. The number must result in a whole number and be between 1 and the total number of outcomes.
The document discusses various methods that credit card companies use to calculate finance charges, including:
- The previous balance method which charges interest on the previous month's balance
- The adjusted balance method which subtracts payments and credits from the previous balance
- The average daily balance method which calculates interest based on the average balance owed each day in the billing period.
It provides an example of how to calculate the average daily balance.
The document discusses various methods that credit card companies use to calculate interest charges and balances, including:
- The previous balance method, which charges interest on the previous month's balance and does not include any credits from the current month.
- The adjusted balance method, which subtracts any payments or credits from the previous month's balance before calculating interest.
- The average daily balance method, which calculates interest based on the average balance over the billing period rather than the balance on a single day. It involves calculating the balance each day and taking the average.
- An example is provided to illustrate how to calculate the average daily balance over a 7-day period with various purchases and payments. Taking the total of
This document discusses compound interest over the course of a 30-year mortgage. It shows the breakdown of principal, interest, and balance owed monthly and yearly. It illustrates that with a $200,000 loan at 6% interest, the total repayment would be $431,677, with $231,677 of that being interest paid. The document notes that compound interest, also called the "eighth wonder of the world," can significantly increase the total cost of loans over time if interest is allowed to compound. It emphasizes the importance of making prepayments or paying off principal early to reduce the total interest paid over the life of the loan.
The document discusses a mortgage acceleration program called the Net Worth Account that aims to help homeowners pay off their mortgages faster and save on interest. It works by using a home equity line of credit or similar account to make extra principal payments on the mortgage. On average, homeowners who use the program can save over $45,000 in interest and pay off their 30-year mortgage in under 11 years. The program is administered through a web-based software service that optimizes payments to maximize interest savings over time.
Problem Set 1 Part 3Do the problem corresponding to your .docxstilliegeorgiana
Problem Set 1 Part 3
Do the problem corresponding to your assigned number.
Section 7-5 of the text will have helpful information
1) A credit card statement showed these transactions during October.
October 1 Previous balance $238.30
October 2 Purchases $62.17
October 30 Payment $185.00
The credit card has an interest rate of 6% on the average daily balance. Find the
average daily balance, the finance charge for the month, and the new balance on
November 1. [Hint: Remember that October has 31 days.]
1)
2) A credit card statement showed these transactions during October.
October 1 Previous balance $257.28
October 12 Purchases $79.55
October 29 Payment $55.00
The credit card has an interest rate of 4.5% on the average daily balance. Find
the average daily balance, the finance charge for the month, and the new
balance on November 1. [Hint: Remember that October has 31 days.]
2)
3) A credit card statement showed these transactions during October.
October 1 Previous balance $413.98
October 15 Purchases $81.45
October 25 Payment $50.00
The credit card has an interest rate of 4% on the average daily balance. Find the
average daily balance, the finance charge for the month, and the new balance on
November 1. [Hint: Remember that October has 31 days.]
3)
4) A credit card statement showed these transactions during October.
October 1 Previous balance $348.34
October 2 Purchases $71.04
October 29 Payment $165.00
The credit card has an interest rate of 13% on the average daily balance. Find
the average daily balance, the finance charge for the month, and the new
balance on November 1. [Hint: Remember that October has 31 days.]
4)
5) A credit card statement showed these transactions during October.
October 1 Previous balance $221.34
October 4 Purchases $27.98
October 18 Payment $120.00
The credit card has an interest rate of 19% on the average daily balance. Find
the average daily balance, the finance charge for the month, and the new
balance on November 1. [Hint: Remember that October has 31 days.]
5)
1
6) A credit card statement showed these transactions during October.
October 1 Previous balance $422.06
October 6 Purchases $51.31
October 16 Payment $190.00
The credit card has an interest rate of 13.5% on the average daily balance. Find
the average daily balance, the finance charge for the month, and the new
balance on November 1. [Hint: Remember that October has 31 days.]
6)
7) A credit card statement showed these transactions during October.
October 1 Previous balance $332.06
October 7 Purchases $86.98
October 16 Payment $150.00
The credit card has an interest rate of 11.5% on the average daily balance. Find
the average daily balance, the finance charge for the month, and the new
balance on November 1. [Hint: Remember that October has 31 days.]
7)
8) A credit card statement showed these transactions during October.
October 1 Previous balance $292.47
October 8 Purchases $62.17
October 26 Payment $185.00
The cred ...
This guide helps consumers navigate the mortgage process in 8 steps: 1) defining what is affordable, 2) understanding your credit, 3) choosing between fixed and adjustable rates, 4) selecting a down payment amount, 5) understanding how points affect interest rates, 6) shopping with multiple lenders, 7) choosing a mortgage, and 8) avoiding pitfalls. The goal is to find the best mortgage to fit the consumer's financial situation through informed decision making at each step.
This document provides a step-by-step guide to help consumers choose the best mortgage. It discusses:
1. Defining what is affordable, understanding your credit, choosing between fixed and adjustable rates, selecting the right down payment, and understanding how points affect interest rates.
2. The importance of understanding your credit report and score to qualify for the best rate. Correcting any errors can improve your score.
3. Different types of mortgages and their tradeoffs (fixed vs adjustable rates), avoiding risky features like balloons payments or prepayment penalties.
4. Factors that determine the right down payment amount depending on the borrower's situation and goals.
The overall document aims
This document provides a step-by-step guide to help consumers choose the best mortgage. It discusses:
1. Defining what is affordable, understanding your credit, choosing between fixed and adjustable rates, selecting the right down payment, and understanding how points affect interest rates.
2. The importance of understanding your credit report and score to qualify for the best rate. Correcting any errors can improve your score.
3. Different types of mortgages and their tradeoffs (fixed vs adjustable rates), the importance of understanding prepayment options, and being wary of risky loan features like balloons payments or prepayment penalties.
4. Steps to take like getting estimates of total monthly costs, calculating the
The document provides tips for managing holiday spending and avoiding debt. It recommends making a budget and sticking to it, starting holiday shopping early and spreading purchases out, using cash instead of credit cards, and paying more than the minimum on credit cards to avoid interest charges that can take years to pay off. Some specific tips include shopping alone and with a list, giving gifts like homemade items or time, and focusing on activities other than shopping to reduce costs.
1. The document summarizes key concepts related to accounting for sales revenue, receivables, and cash including revenue recognition principles, credit card sales, sales discounts, sales returns and allowances, bad debts, and cash controls.
2. It also discusses calculating ratios like gross profit percentage, receivables turnover, average collection period, and preparing bank reconciliations.
3. Examples are provided of journal entries for credit card sales, sales discounts, sales returns, estimating bad debts expense, and reconciling cash accounts.
The document discusses a software program called the Money Merge Account (MMA) that helps homeowners pay off their mortgages much faster by leveraging the interest-canceling effects of a home equity line of credit (HELOC). It provides examples of families eliminating 30-year mortgages in 10-12 years while maintaining their standard of living. The MMA software analyzes users' financial situations and recommends monthly funds transfers and prepayments that reduce interest costs substantially.
The document discusses a mortgage management account (MMA) software program developed by Accelerated Equity & Development to help homeowners pay off their mortgages early. The MMA program was tested successfully with 400 homeowners in Denver, reducing their mortgage payoff time by an average of 10-15 years. The MMA works by maximizing the performance of homeowners' money through optimizing various accounts and performing periodic funds transfers to pay down the principal on their mortgage.
The Home Equity Acceleration Plan (H.E.A.P.) allows homeowners to pay off their mortgage early without changing spending habits. It works by using a home equity line of credit as the primary checking account. Any surplus in the account from lower spending pays down the line of credit, and that amount can then be re-borrowed to pay down the primary mortgage. Using this method leverages daily interest compounding and ensures every dollar is put toward debt reduction. The example client could pay off their $200,000 mortgage in 8.5 years instead of 30, saving over $177,000 in total interest costs. H.E.A.P. has no risks as long as budgets are followed,
Budgeting_ Wise Use of Credit_Understanding Your Credit Report and ScoreSpringboard
- The document provides information on creating and managing a budget, including tracking income and expenses, categorizing spending, and balancing income and expenses.
- It discusses the importance of paying yourself first by saving 10-15% of your income and paying more than just the minimum on debts to get out of debt faster.
- Tips are provided for reducing expenses in various categories and increasing income or decreasing expenses to balance the budget if needed.
The document discusses how banks make money by lending out deposits and collecting interest. It notes that banks can use the same dollars over and over by lending out money as it is paid back through loans and interest. This allows the money to be "recycled" or have high "velocity" as more loans are issued. The document then explains how an individual can replicate this process by becoming their own bank - borrowing from themselves to make purchases and paying themselves back with interest over time, thus accumulating more capital that can be reused to purchase more items. In doing so, they can acquire more goods than the original amount invested and see their capital grow significantly over several years just like a real bank.
This document provides an overview of personal credit and credit scores. It defines credit as borrowing money that must be repaid over time, with interest. The benefits of credit include purchasing power and establishing a credit history, while risks include debt, fees, and damage to one's credit if not repaid. The "four C's" that lenders evaluate are credit history, collateral, capacity to repay, and current conditions. It also discusses credit reports, credit scores, responsible credit management, and why maintaining good credit is important.
The document discusses various topics related to credit cards including:
1) Costs associated with credit cards such as annual percentage rates, grace periods, annual fees, and transaction fees.
2) Features of credit cards like credit limits and which services are available.
3) Different methods for calculating finance charges such as average daily balance, adjusted balance, and previous balance.
4) Steps to take if denied credit, including disputing the denial or improving your creditworthiness.
Chapter one Person finance 1 website.pptssuser0f06781
This document discusses creating a personal financial plan. It emphasizes that financial goals should drive the plan and having clear goals is important. A good financial plan includes seven key components: budgeting, managing liquidity, financing large purchases, managing risk, investing, planning for retirement, and record keeping. The first component discussed is budgeting, which involves determining net worth, establishing income, and identifying expenses. Managing liquidity or cash flow is also important, including decisions around credit use and credit management. Different types of credit like installment plans and credit cards are outlined. Overall, the document provides an overview of the important elements to include when creating a personalized financial plan.
This document contains a cash flow statement, net worth statement, ratios analysis, and debt summary for a couple named Brooke and Jacob Taylor. It notes their incomes, expenses, assets, liabilities, and various financial ratios. Their basic liquidity ratio is low at 0.62, suggesting insufficient emergency savings. Their asset-to-debt ratio is high at 9.62, meaning ample assets compared to debts. The document prioritizes paying down their debts from highest to lowest interest rates and discusses options for improving their financial situation like reducing expenses and saving more before making large purchases.
This document outlines the expectations for a Life Math course covering topics like personal finance, measurements, and practical applications. Students will use a textbook and complete bellwork, homework, quizzes, tests, and projects. The teacher communicates using email, phone, Facebook, and Twitter. Students are expected to be respectful, responsible, and prepared with late work accepted at reduced credit. Grades are based on bellwork, homework, projects, tests, and a final exam.
This document explains the relationships between frequency, wavelength, and pitch in sound. It states that the frequency of a sound wave, which is measured in hertz, depends on how close together the waves are - the shorter the wavelength, the higher the frequency and pitch. Musicians refer to frequency as pitch and use note names instead of measurements. The speed of sound waves is about the same, so waves with longer wavelengths have a lower frequency since they pass by less often than shorter waves.
The document discusses various methods that credit card companies use to calculate finance charges, including:
- The previous balance method which charges interest on the previous month's balance
- The adjusted balance method which subtracts payments and credits from the previous balance
- The average daily balance method which calculates interest based on the average balance owed each day in the billing period.
It provides an example of how to calculate the average daily balance.
The document discusses various methods that credit card companies use to calculate interest charges and balances, including:
- The previous balance method, which charges interest on the previous month's balance and does not include any credits from the current month.
- The adjusted balance method, which subtracts any payments or credits from the previous month's balance before calculating interest.
- The average daily balance method, which calculates interest based on the average balance over the billing period rather than the balance on a single day. It involves calculating the balance each day and taking the average.
- An example is provided to illustrate how to calculate the average daily balance over a 7-day period with various purchases and payments. Taking the total of
This document discusses compound interest over the course of a 30-year mortgage. It shows the breakdown of principal, interest, and balance owed monthly and yearly. It illustrates that with a $200,000 loan at 6% interest, the total repayment would be $431,677, with $231,677 of that being interest paid. The document notes that compound interest, also called the "eighth wonder of the world," can significantly increase the total cost of loans over time if interest is allowed to compound. It emphasizes the importance of making prepayments or paying off principal early to reduce the total interest paid over the life of the loan.
The document discusses a mortgage acceleration program called the Net Worth Account that aims to help homeowners pay off their mortgages faster and save on interest. It works by using a home equity line of credit or similar account to make extra principal payments on the mortgage. On average, homeowners who use the program can save over $45,000 in interest and pay off their 30-year mortgage in under 11 years. The program is administered through a web-based software service that optimizes payments to maximize interest savings over time.
Problem Set 1 Part 3Do the problem corresponding to your .docxstilliegeorgiana
Problem Set 1 Part 3
Do the problem corresponding to your assigned number.
Section 7-5 of the text will have helpful information
1) A credit card statement showed these transactions during October.
October 1 Previous balance $238.30
October 2 Purchases $62.17
October 30 Payment $185.00
The credit card has an interest rate of 6% on the average daily balance. Find the
average daily balance, the finance charge for the month, and the new balance on
November 1. [Hint: Remember that October has 31 days.]
1)
2) A credit card statement showed these transactions during October.
October 1 Previous balance $257.28
October 12 Purchases $79.55
October 29 Payment $55.00
The credit card has an interest rate of 4.5% on the average daily balance. Find
the average daily balance, the finance charge for the month, and the new
balance on November 1. [Hint: Remember that October has 31 days.]
2)
3) A credit card statement showed these transactions during October.
October 1 Previous balance $413.98
October 15 Purchases $81.45
October 25 Payment $50.00
The credit card has an interest rate of 4% on the average daily balance. Find the
average daily balance, the finance charge for the month, and the new balance on
November 1. [Hint: Remember that October has 31 days.]
3)
4) A credit card statement showed these transactions during October.
October 1 Previous balance $348.34
October 2 Purchases $71.04
October 29 Payment $165.00
The credit card has an interest rate of 13% on the average daily balance. Find
the average daily balance, the finance charge for the month, and the new
balance on November 1. [Hint: Remember that October has 31 days.]
4)
5) A credit card statement showed these transactions during October.
October 1 Previous balance $221.34
October 4 Purchases $27.98
October 18 Payment $120.00
The credit card has an interest rate of 19% on the average daily balance. Find
the average daily balance, the finance charge for the month, and the new
balance on November 1. [Hint: Remember that October has 31 days.]
5)
1
6) A credit card statement showed these transactions during October.
October 1 Previous balance $422.06
October 6 Purchases $51.31
October 16 Payment $190.00
The credit card has an interest rate of 13.5% on the average daily balance. Find
the average daily balance, the finance charge for the month, and the new
balance on November 1. [Hint: Remember that October has 31 days.]
6)
7) A credit card statement showed these transactions during October.
October 1 Previous balance $332.06
October 7 Purchases $86.98
October 16 Payment $150.00
The credit card has an interest rate of 11.5% on the average daily balance. Find
the average daily balance, the finance charge for the month, and the new
balance on November 1. [Hint: Remember that October has 31 days.]
7)
8) A credit card statement showed these transactions during October.
October 1 Previous balance $292.47
October 8 Purchases $62.17
October 26 Payment $185.00
The cred ...
This guide helps consumers navigate the mortgage process in 8 steps: 1) defining what is affordable, 2) understanding your credit, 3) choosing between fixed and adjustable rates, 4) selecting a down payment amount, 5) understanding how points affect interest rates, 6) shopping with multiple lenders, 7) choosing a mortgage, and 8) avoiding pitfalls. The goal is to find the best mortgage to fit the consumer's financial situation through informed decision making at each step.
This document provides a step-by-step guide to help consumers choose the best mortgage. It discusses:
1. Defining what is affordable, understanding your credit, choosing between fixed and adjustable rates, selecting the right down payment, and understanding how points affect interest rates.
2. The importance of understanding your credit report and score to qualify for the best rate. Correcting any errors can improve your score.
3. Different types of mortgages and their tradeoffs (fixed vs adjustable rates), avoiding risky features like balloons payments or prepayment penalties.
4. Factors that determine the right down payment amount depending on the borrower's situation and goals.
The overall document aims
This document provides a step-by-step guide to help consumers choose the best mortgage. It discusses:
1. Defining what is affordable, understanding your credit, choosing between fixed and adjustable rates, selecting the right down payment, and understanding how points affect interest rates.
2. The importance of understanding your credit report and score to qualify for the best rate. Correcting any errors can improve your score.
3. Different types of mortgages and their tradeoffs (fixed vs adjustable rates), the importance of understanding prepayment options, and being wary of risky loan features like balloons payments or prepayment penalties.
4. Steps to take like getting estimates of total monthly costs, calculating the
The document provides tips for managing holiday spending and avoiding debt. It recommends making a budget and sticking to it, starting holiday shopping early and spreading purchases out, using cash instead of credit cards, and paying more than the minimum on credit cards to avoid interest charges that can take years to pay off. Some specific tips include shopping alone and with a list, giving gifts like homemade items or time, and focusing on activities other than shopping to reduce costs.
1. The document summarizes key concepts related to accounting for sales revenue, receivables, and cash including revenue recognition principles, credit card sales, sales discounts, sales returns and allowances, bad debts, and cash controls.
2. It also discusses calculating ratios like gross profit percentage, receivables turnover, average collection period, and preparing bank reconciliations.
3. Examples are provided of journal entries for credit card sales, sales discounts, sales returns, estimating bad debts expense, and reconciling cash accounts.
The document discusses a software program called the Money Merge Account (MMA) that helps homeowners pay off their mortgages much faster by leveraging the interest-canceling effects of a home equity line of credit (HELOC). It provides examples of families eliminating 30-year mortgages in 10-12 years while maintaining their standard of living. The MMA software analyzes users' financial situations and recommends monthly funds transfers and prepayments that reduce interest costs substantially.
The document discusses a mortgage management account (MMA) software program developed by Accelerated Equity & Development to help homeowners pay off their mortgages early. The MMA program was tested successfully with 400 homeowners in Denver, reducing their mortgage payoff time by an average of 10-15 years. The MMA works by maximizing the performance of homeowners' money through optimizing various accounts and performing periodic funds transfers to pay down the principal on their mortgage.
The Home Equity Acceleration Plan (H.E.A.P.) allows homeowners to pay off their mortgage early without changing spending habits. It works by using a home equity line of credit as the primary checking account. Any surplus in the account from lower spending pays down the line of credit, and that amount can then be re-borrowed to pay down the primary mortgage. Using this method leverages daily interest compounding and ensures every dollar is put toward debt reduction. The example client could pay off their $200,000 mortgage in 8.5 years instead of 30, saving over $177,000 in total interest costs. H.E.A.P. has no risks as long as budgets are followed,
Budgeting_ Wise Use of Credit_Understanding Your Credit Report and ScoreSpringboard
- The document provides information on creating and managing a budget, including tracking income and expenses, categorizing spending, and balancing income and expenses.
- It discusses the importance of paying yourself first by saving 10-15% of your income and paying more than just the minimum on debts to get out of debt faster.
- Tips are provided for reducing expenses in various categories and increasing income or decreasing expenses to balance the budget if needed.
The document discusses how banks make money by lending out deposits and collecting interest. It notes that banks can use the same dollars over and over by lending out money as it is paid back through loans and interest. This allows the money to be "recycled" or have high "velocity" as more loans are issued. The document then explains how an individual can replicate this process by becoming their own bank - borrowing from themselves to make purchases and paying themselves back with interest over time, thus accumulating more capital that can be reused to purchase more items. In doing so, they can acquire more goods than the original amount invested and see their capital grow significantly over several years just like a real bank.
This document provides an overview of personal credit and credit scores. It defines credit as borrowing money that must be repaid over time, with interest. The benefits of credit include purchasing power and establishing a credit history, while risks include debt, fees, and damage to one's credit if not repaid. The "four C's" that lenders evaluate are credit history, collateral, capacity to repay, and current conditions. It also discusses credit reports, credit scores, responsible credit management, and why maintaining good credit is important.
The document discusses various topics related to credit cards including:
1) Costs associated with credit cards such as annual percentage rates, grace periods, annual fees, and transaction fees.
2) Features of credit cards like credit limits and which services are available.
3) Different methods for calculating finance charges such as average daily balance, adjusted balance, and previous balance.
4) Steps to take if denied credit, including disputing the denial or improving your creditworthiness.
Chapter one Person finance 1 website.pptssuser0f06781
This document discusses creating a personal financial plan. It emphasizes that financial goals should drive the plan and having clear goals is important. A good financial plan includes seven key components: budgeting, managing liquidity, financing large purchases, managing risk, investing, planning for retirement, and record keeping. The first component discussed is budgeting, which involves determining net worth, establishing income, and identifying expenses. Managing liquidity or cash flow is also important, including decisions around credit use and credit management. Different types of credit like installment plans and credit cards are outlined. Overall, the document provides an overview of the important elements to include when creating a personalized financial plan.
This document contains a cash flow statement, net worth statement, ratios analysis, and debt summary for a couple named Brooke and Jacob Taylor. It notes their incomes, expenses, assets, liabilities, and various financial ratios. Their basic liquidity ratio is low at 0.62, suggesting insufficient emergency savings. Their asset-to-debt ratio is high at 9.62, meaning ample assets compared to debts. The document prioritizes paying down their debts from highest to lowest interest rates and discusses options for improving their financial situation like reducing expenses and saving more before making large purchases.
This document outlines the expectations for a Life Math course covering topics like personal finance, measurements, and practical applications. Students will use a textbook and complete bellwork, homework, quizzes, tests, and projects. The teacher communicates using email, phone, Facebook, and Twitter. Students are expected to be respectful, responsible, and prepared with late work accepted at reduced credit. Grades are based on bellwork, homework, projects, tests, and a final exam.
This document explains the relationships between frequency, wavelength, and pitch in sound. It states that the frequency of a sound wave, which is measured in hertz, depends on how close together the waves are - the shorter the wavelength, the higher the frequency and pitch. Musicians refer to frequency as pitch and use note names instead of measurements. The speed of sound waves is about the same, so waves with longer wavelengths have a lower frequency since they pass by less often than shorter waves.
The document appears to be notes from a homework assignment on April 16, 2012 involving notes and rests. It consists of 6 pages of work on reading music, with each page labeled as a worksheet and referencing a wikihow article on reading music.
O documento descreve a distância entre o monte do arremessador e o home plate no beisebol. Ele fornece um diagrama ilustrando que a distância entre os dois pontos é de 90 pés.
The document defines and provides the formulas for calculating batting average, slugging percentage, earned run average (ERA), and winning percentage in baseball. It also includes homework assignments on slugging and ERA.
A batting average is calculated by taking a player's total hits and dividing it by their total at-bats. In the example given, a major league player had 128 hits in 523 at-bats. Calculating his batting average, he had 128 hits divided by 523 at-bats, which is his batting average expressed as a decimal to three places. The document provides instructions on how to calculate batting average and works through an example of a player with 128 hits in 523 at-bats to demonstrate how to calculate it.
This document provides instructions and a worksheet for calculating fielding percentages in baseball. It begins with an agenda that includes warming up by asking how many outs are in an inning, reading notes on the topic, and working through a worksheet. The worksheet then provides tables to calculate fielding percentages based on the number of chances and errors for both the home and visiting teams in different innings.
The document discusses data from the 2012 Indy 500 race, including the finishing positions and times of the top 15 drivers. It includes a box plot that shows the median, quartiles and outliers for the finishing times. The box plot reveals that most drivers finished the race between 3 and 4 hours, with a few outliers above and below that range.
Police investigators analyze skid marks at accident scenes to determine vehicle speed and stopping distance. They account for factors like pavement conditions, tire tread, and inclines to accurately calculate speed from skid mark length using formulas. The documents provide examples of calculating stopping distances from skid marks of known vehicles that were braking from specific speeds in experiments to determine the formula constants.
This document provides formulas to calculate reaction distance and braking distance. Reaction distance is the distance traveled during the driver's reaction time to brake and can be calculated as d = 1.1 x r, where d is distance in feet and r is speed in mph. Braking distance is the distance required to fully stop the car after braking and can be calculated as b = r x r/30 x F, where b is braking distance in feet, r is speed, and F is a surface factor ranging from 0.45 to 0.90 depending on road conditions. An example calculates distances for a car traveling 50 mph on dry asphalt.
The document discusses law enforcement and contains the following:
1) A bellwork question asking students to identify the first seven words of the Miranda Rights.
2) Directions for a small group discussion that asks students to discuss the responsibilities of law enforcement officers, why it is necessary to pay people to protect citizens, situations where traffic offenses could result in tickets or jail time, and how math is used in traffic offenses.
3) A prompt for students to list pros and cons of pursuing a career in law enforcement.
This document contains 16 practice questions for a medication calculation test. Each question presents a medication dosage scenario and asks the learner to calculate the correct amount, such as the number of tablets or milliliters, needed to administer the prescribed dosage. The questions cover a range of calculation types involving conversion between measurement units, dosages based on patient weight, and intravenous drip rates. At the end, the document provides a link to an online video tutorial that can help learners use this "Whack-A-Mole Game" to study for the test.
This document provides instructions for calculating intravenous (IV) flow rates and drop rates. It includes examples of calculating: (1) flow rate in cc/hr given total volume and time; (2) drops per minute given flow rate in cc/hr and drop factor; (3) amount of drug per hour or time to infuse given total drug amount, concentration, and flow rate; and (4) end time of infusion given current time and flow rate. Formulas are provided for determining various rates and amounts for IV infusions.
The document contains information and practice questions about calculating pediatric medication dosages based on a child's weight. It provides examples of calculating required milligrams and milliliters of medication for infants of specified weights, using available concentrations and prescribed dosages in milligrams per kilogram or milligrams per day. It also lists steps for first converting a weight in ounces to pounds and kilograms when calculating a dosage.
This document provides instructions for nurses on calculating dosages using proportions when the ordered medication amount differs from what is available. It explains the steps to set up a proportion using units and cross multiplying to solve for the needed amount. Examples provided demonstrate calculating tablets, milliliters, and milliequivalents needed based on the ordered dose and available formulations.
The document provides examples of multiple step calculations for converting medication dosages between different units. It gives step-by-step instructions for setting up proportions and converting units before substituting into the proportion to solve dosage problems. Five examples are provided that demonstrate converting between units like grains, milligrams, grams, and milliliters to calculate the correct dosage and number of vials needed.
This document provides instructions for nurses on calculating dosages using proportions when the ordered medication amount differs from what is available. It explains the steps to set up a proportion using units and cross multiplying to solve for the needed amount. Examples are provided calculating tablets, milliliters, and milliequivalents needed based on the ordered dose and available formulations.
The document lists resources for nursing students on math topics including four URLs for websites on nursing math, medication calculations, and math involved in nursing. It also contains classwork on converting measurement units and dosage calculations, with multiple practice problems and solutions presented over 17 pages.
This document provides a decimal worksheet for a nursing class. It includes exercises on converting fractions to decimals and vice versa, as well as adding, subtracting, multiplying, and dividing decimals. The worksheet aims to help nursing students practice working with decimals, which are commonly used in health care measurements and dosages.
The document outlines the agenda for a nursing day 1 training which includes discussing medical equivalents and terms. The agenda has 4 items: 1) Read/study notes on medical equivalents and terms, 2) Review math for medical fields, 3) Roman numerals, and 4) Work on a Roman numerals and fractions worksheet. The document provides the worksheet which has examples of Roman numerals and fractions used in medical settings.
What Lessons Can New Investors Learn from Newman Leech’s Success?Newman Leech
Newman Leech's success in the real estate industry is based on key lessons and principles, offering practical advice for new investors and serving as a blueprint for building a successful career.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
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How to Identify the Best Crypto to Buy Now in 2024.pdfKezex (KZX)
To identify the best crypto to buy in 2024, analyze market trends, assess the project's fundamentals, review the development team and community, monitor adoption rates, and evaluate risk tolerance. Stay updated with news, regulatory changes, and expert opinions to make informed decisions.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
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Budgeting as a Control Tool in Government Accounting in Nigeria
Being a Paper Presented at the Nigerian Maritime Administration and Safety Agency (NIMASA) Budget Office Staff at Sojourner Hotel, GRA, Ikeja Lagos on Saturday 8th June, 2024.
The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
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Explore the world of investments with an in-depth comparison of the stock market and real estate. Understand their fundamentals, risks, returns, and diversification strategies to make informed financial decisions that align with your goals.
2. Credit Cards September 23, 2011
Credit Card:
preapproved credit used to purchase now and pay later
Credit Card Responsibility:
use it if you can pay it off
pay more than minimum balance to pay off quickly
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3. Credit Cards September 23, 2011
Finance Charge
Finance Charge per $100 = (Finance charge/ amount financed) *100
The finance charge for a 6month, $1200 installment loan is $72.
Find the annual % rate on the loan.
3
4. Credit Cards September 23, 2011
Interest Rates: APR (annual percentage rate)
Credit card interest is compounding (interest is added each month based
on amount of principal).
How long would it take you to pay off the purchase without interest?
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5. Credit Cards September 23, 2011
APR = 24F F = finance charge
P(n+1) P = original principal, n = # of payments per year
Find the APR for a finance charge of $5.75 per $100 for 9 payments.
5
8. Credit Cards September 23, 2011
Previous Balance Method
charges interest on the balance in the account on the last
billing date of the previous month. Any credits in current month
are not included.
Finance charge = previous balance * periodic rate
New balance = previous balance + (finance charge + new purchases + fees) (payments + credits)
Laura's card company uses the previous balance method.
The monthly periodic rate is 1.5% and 18% APR. Her previous balance was $225.60.
This month she purchased shoes for $128.99, gas for 21.89, dinner for $27.79.
She returned a pair of shoes for $35.99 and made a payment of $75.00.
Find the finance charge for the month and the new balance.
8
9. Credit Cards September 23, 2011
Adjusted Balance Method
subtracts payments and credits during this month from the
balance at the end of the previous month. Purchases and fees
in current month are not included.
Adjusted balance = previous balance (payments + credits)
Finance charge = adjusted balance * periodic rate
New balance = adjusted balance + finance charge + new purchases and fees
Laura's card company uses the adjusted balance method.
The monthly periodic rate is 1.5% and 18% APR. Her previous balance was $225.60.
This month she purchased shoes for $128.99, gas for 21.89, dinner for $27.79.
She returned a pair of shoes for $35.99 and made a payment of $75.00.
Find the finance charge for the month and the new balance.
9
10. Credit Cards September 23, 2011
Average Daily Balance Method (ADB)
total of the balance at the end of each day during a period
divided by the number of days in the period.
Daily Balance = Beginning balance (payments + credits) + (purchases + fees)
ADB = sum of daily balances / # of days in billing period
Finance Charge = ADB * monthly periodic rate
New Balance = Beginning balance (payments + credits) + (finance charges + new purchases + fees)
Laura's card company uses the average daily balance method.
The monthly periodic rate is 1.5% and 18% APR. Her previous balance was $225.60.
This month she purchased shoes for $128.99 on the 4th, gas for 21.89 on the 9th, dinner for
$27.79 on the 12th.
She returned a pair of shoes for $35.99 on the 18th and made a payment of $75.00 on the 24th.
Find the finance charge for the month and the new balance.
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13. Credit Cards September 23, 2011
Average Daily Balance
The Average Daily Balance is the total of the balance at the end of each day during a period divided
by the number of days in the period.
Average Daily Balance, or ADB, is often used to calculate periodic interest charges by multiplying
the periodic interest rate by the average daily balance. The most common period used for this type of
calculation is monthly, which can either be a rolling 30 day period, or an actual calendar month. The
most common use of Average Daily Balance for typical consumers is credit cards that calculate
monthly finance charges based on the average daily balance, although some only do this if the
balance from the prior month is not paid in full by the due date.
Example of Average Daily Balance
The method for finding the Average Daily Balance is illustrated in the chart below. In this example,
let's assume the following:
* Starting balance on Jan 1: $1,987.65
* Period length: 7 days
* Purchases:
o Jan 2: $256.78
o Jan 5: $ 78.99
o Jan 7: $ 22.21
* Payments:
o Jan 4: $497.15
o Jan 7: $800.00
Starting with the starting balance, add the purchases and subtract the payments for each day to find
that day's balance. Be sure to include all the days in the period, even those with no transaction
activity. Add these daily balances (in this case, seven of them) and divide by the number of days in
the period (in this case, seven) to find the Average Daily Balance.
Date
Purchases
Payments
Balance
Jan 01 $ 1,987.65
Jan 02 $256.78 $ 2,244.43
Jan 03 $ 2,244.43
Jan 04 $497.15 $ 1,747.28
Jan 05 $ 78.99 $ 1,826.27
Jan 06 $ 1,826.27
Jan 07 $ 22.21 $800.00 $ 1,048.48
Total of Daily Balances: $12,924.81
Number of Days: 7
Average Daily Balance: $1,846.40
As you can see, making payments earlier can reduce your overall Average Daily Balance. This, in
turn, will reduce your interest payments.
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14. Credit Cards September 23, 2011
Calculating the Average Daily Balance
Let’s say your APR is 12% and your billing cycle is 25 days long.
You started the billing cycle with a balance of $100. On Day 4, you made a $100 purchase. On
Day 20, a $25 payment was credited to your account. Your daily balance during the billing cycle
was:
Day 1 – 3: $100
Day 4 – 20: $200 ($100 purchase)
Day 20 – 25: $175 ($25 credit)
To calculate your average daily balance you must total your balance from each day in the billing
cycle and divide by the number of days in the cycle.
(Day 1 Balance + Day 2 Balance + Day 3 Balance…) / number of days in billing cycle
$4575 / 25 = $183
Calculating the Average Daily Balance Finance Charge
Based on the details listed above, your finance charge using the average daily balance method
would be:
$183 * .12 * 25 / 365 = $1.50
If you continued making minimum payments and no additional charges on this account, you'd pay
$18.00 in finance charges over the course of a year.
14
15. Credit Cards September 23, 2011
On Friday you had a balance of $52 on your credit card.
On Monday you spent $17 from your credit card.
On Wednesday you spent $24.
Find your average daily balance for one week, (7days)
starting from Friday.
* Starting balance on Jan 1: $1,987.65 APR 22%
* Period length: 7 days
* Purchases:
o Jan 2: $256.78
o Jan 5: $ 78.99
o Jan 7: $ 22.21
* Payments:
o Jan 4: $497.15
o Jan 7: $800.00
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16. Credit Cards September 23, 2011
You Opened a Credit Card in January. You paid your
balance in full for January and February, and in March
you left $100 not paid. You make the following
purchases and payments.
March 29 April 27
Purchases
March 31 $25.40 Quik Trip
April 1 $56.70 Macy's
April 9 $11.56 Hong Kong Inn
April 14 $31.42 Conoco
April 17 $107.23 Best Buy
April 20 $7.43 ChickfilA
April 24 $23.68 Dillards
Payments
April 27 $45.00
Find the Average Daily Balance
Find the Finance Charges
Find the beginning balance for the next Statement
16
17. Credit Cards September 23, 2011
New Statement
April 28 May 27
Purchases
May 3 $75.00
May 12 $32.63
Payments
May 26 $30.00
17
18. Credit Cards September 23, 2011
For example, if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest
charged. If, however, even $1.00 of the total amount remained unpaid, interest would be charged on the $1,000 from the date
of purchase until the payment is received. The precise manner in which interest is charged is usually detailed in a cardholder
agreement which may be summarized on the back of the monthly statement. The general calculation formula most financial
institutions use to determine the amount of interest to be charged is APR/100 x ADB/365 x number of days revolved.
Take the Annual percentage rate (APR) and divide by 100 then multiply to the amount of the average daily balance (ADB)
divided by 365 and then take this total and multiply by the total number of days the amount revolved before payment was
made on the account.
Financial institutions refer to interest charged back to the original time of the transaction and up to the time a payment was
made, if not in full, as RRFC or residual retail finance charge. Thus after an amount has revolved and a payment has been
made, the user of the card will still receive interest charges on their statement after paying the next statement in full (in fact
the statement may only have a charge for interest that collected up until the date the full balance was paid, i.e. when the
balance stopped revolving).
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