Thursday, September 13, 2007

September 12

Today in class we review check writing, deposit slip writing and bank reconciliation.
We concluded class with a lesson on calculating interest.

Simple Interest: 5 % on $500.00

500.00 x .05 = 25.00

Balance with interest $525.000

Compound Interest: 5% compounded quarterly.
Each quarter (every 3 months) account credited 1.25%

500.00 Starting Balance
6.25 1st Quarter Interest
506.25 New Balance
6.38 2nd Quarter Interest
512.63 New Balance
6.40 3rd Quarter Interest
519.03 New Balance
6.49 4th Quarter Interest
525.52 New Balance with interest

THESE 2 TOPICS WILL BE ON THE TEST
Also on the test:
Parts of a check


STUDY.

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