Topic Test Answers

Which of the following items are elements of a monthly checking account statement?I. A period (beginning date and ending date)II. A beginning balance and ending balance.III. A detailed list of debits and credits during the period.

Dominic is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Dominic’s spending pattern:DayDebit ($)Credit ($)Monday158---Tuesday6944Wednesday175---Thursday13138Friday---53Saturday2214If the bank charges Dominic an overdraft fee of $25 every time he overdraws his account, and Dominic overdrew his account on Thursday but not on Saturday, which of the following is a possible amount of money that Dominic could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees.

Ronald is trying to reconstruct his spending pattern from May. He knows that he had $315 in his account on May 1, but after that, his receipts and balance statements are all scrambled. Here are Ronald’s records:DateTransaction TypeAmount ($)5/25Purchase665/18Purchase905/30Purchase1885/24Deposit1515/22Purchase1525/8Deposit1045/3Purchase1755/6Purchase82Assuming that this is a complete, if scrambled, record of Ronald’s May spending and that any overdraft fees incurred do not affect the running total, how many times did Ronald overdraw his account in May?

How much money would need to be deposited into an account earning 5.75% interest compounded annually in order for the accumulated value at the end of 25 years to be $85,000?

An investment of $6,599.20 earns 4.2% interest compounded monthly over 7 years. Approximately how much interest is earned on the investment?

Greg invests $2,680 in a CD paying 7.0% interest, and $3,060 in an online savings account paying 4.5% interest. How much more interest will the CD have earned than the savings account after 1 year?

Assume that you are going to open a checking account. You are examining different banks and banking accounts to choose a bank account for your needs. Which of the following statements should not be one of your reasons for examining different banks?

Irving spent the day shopping and made the following purchases:ItemCost ($)Novel8.75Shirt21.66Lunch9.13Potted plant16.89When Irving was done, he checked his account balance and found he had a total of $95.06. How much money was in Irving’s account to begin with?

Julien was involved in an accident in which he merged into another car, damaging the front fender of the other car. Julien is fully insured through his insurance company. Which component of Julien’s insurance plan will cover the damage he caused to the other car?

If your bank charges an out-of-network service fee of $3.00, and you withdraw $20 from each of three out-of-network ATMs, how much money in total will be removed from your account?

Identify the following bank account.This account offers a good interest rate, but tends to require a certain minimum deposit. Usually, this account becomes mature in a matter of several months. You can withdraw money from this account before it becomes mature without penalty, but there is a limit to how frequently you can withdraw it.

Why is it sometimes easier to open an account with a bank rather than with a credit union?

If the NCUA pays $1.92 billion to cover several failed credit unions, and doing so drains its reserve fund by 8.42%, approximately how much was in the fund to begin with?

Certain investments compound interest at different intervals. What effect does the size of the compounding interval have on the yield of the investment?

Consider the following incomplete deposit ticket: Which of the following are possible amounts for the third check and the cash that Cindy deposited?