Activity Worksheet #5 (Chapter 5) Name 1. What should you do if your ATM or debit card is lost or stolen? Why 2. When might it be appropriate for you to save via a CD versus a money market account? 3. Caryn Thorton age 18, recently received an inheritance of $50,000 from her grandmother's estate. She plans to use the money for the down payment on a home in ten years when she finishes her education. Right now the funds are in a savings account paying 1%. How much would she have in ten years if instead she purchased a ten-year CD paying 4%? 4. Twins Kathy and Mary are both age 25. Beginning at age 25, Barbara invests $2,000 per year for 10 years and then never sets aside another penny. Mary waits 10 years and then invests $2,000 per year for the next 30 years. Assuming they both earn 5%, how much will each twin have at age 65? 5. You want to create a retirement account so you can retire at age 65 (you are now 25). You would like the account to grow to $1M. The investment can earn 10%/year. How much do you need to place in the account each year? 6. Andy has a checking account with AGCU. Illustrated below are his check register log and bank statement. Reconcile the checking account and answer the following questions? a. What is the total amount of the outstanding check(s)? b. What are the outstanding entries listed on the bank statement and not in the checkbook log? Checkbook Log Bank Statement BALANCE DATE ACTIVITY AMOUNT BALANCE DATE ENTRY AMOUNT 11/2 11/4 11/9 11/12 11/13 11/13 11/15 11/23 11/27 11/28 11/28 11/1 11/3 11/12 11/12 412.66 412.66 17.46 Debit Card POS Transaction 17.46 395.20 Debit Card: CVS 395.20 850.00 Check #221 35.00 360.20 Payday 1245.20 850.00 84.56 DIRECT DEP 1210.20 Debit Card: Walmart 1160.64 Debit Card POS Transaction 11/12 11/13 11/28 84.56 1125.64 Suddenlink 80.30 1080.34 Pine Ridge ACH withdrawal: Suddenlink 80.30 1045.34 740.00 340.34 ACH withdrawal: Pine Ridge Apt 240.00 580.34 740.00 305.34 Deposit Debit Card: Sears Debit Card :POS Transaction 68.87 236.47 68.87 511.47 42.00 194.47 Debit Card: Panera Debit Card POS Transaction 42.00 469.47 Check # 221 434.47 Deposit 240.00 35.00 434.47 ATM Withdrawal Service Charge 100.00 334.47 Check #224 27.35 407.12 100 4.50 329.97 ATM 307.12 Interest 0.75 330.72

Activity Worksheet #5 (Chapter 5) Name 1. What should you do if your ATM or debit card is lost or stolen? Why 2. When might it be appropriate for you to save via a CD versus a money market account? 3. Caryn Thorton age 18, recently received an inheritance of $50,000 from her grandmother's estate. She plans to use the money for the down payment on a home in ten years when she finishes her education. Right now the funds are in a savings account paying 1%. How much would she have in ten years if instead she purchased a ten-year CD paying 4%? 4. Twins Kathy and Mary are both age 25. Beginning at age 25, Barbara invests $2,000 per year for 10 years and then never sets aside another penny. Mary waits 10 years and then invests $2,000 per year for the next 30 years. Assuming they both earn 5%, how much will each twin have at age 65? 5. You want to create a retirement account so you can retire at age 65 (you are now 25). You would like the account to grow to $1M. The investment can earn 10%/year. How much do you need to place in the account each year? 6. Andy has a checking account with AGCU. Illustrated below are his check register log and bank statement. Reconcile the checking account and answer the following questions? a. What is the total amount of the outstanding check(s)? b. What are the outstanding entries listed on the bank statement and not in the checkbook log? Checkbook Log Bank Statement BALANCE DATE ACTIVITY AMOUNT BALANCE DATE ENTRY AMOUNT 11/2 11/4 11/9 11/12 11/13 11/13 11/15 11/23 11/27 11/28 11/28 11/1 11/3 11/12 11/12 412.66 412.66 17.46 Debit Card POS Transaction 17.46 395.20 Debit Card: CVS 395.20 850.00 Check #221 35.00 360.20 Payday 1245.20 850.00 84.56 DIRECT DEP 1210.20 Debit Card: Walmart 1160.64 Debit Card POS Transaction 11/12 11/13 11/28 84.56 1125.64 Suddenlink 80.30 1080.34 Pine Ridge ACH withdrawal: Suddenlink 80.30 1045.34 740.00 340.34 ACH withdrawal: Pine Ridge Apt 240.00 580.34 740.00 305.34 Deposit Debit Card: Sears Debit Card :POS Transaction 68.87 236.47 68.87 511.47 42.00 194.47 Debit Card: Panera Debit Card POS Transaction 42.00 469.47 Check # 221 434.47 Deposit 240.00 35.00 434.47 ATM Withdrawal Service Charge 100.00 334.47 Check #224 27.35 407.12 100 4.50 329.97 ATM 307.12 Interest 0.75 330.72

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 8FPC

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