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Formula for Previous Interest Balance

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					Account Statements


Section 5-3



Presented by M J Lund
Section Objective
Compute:
   new balance on a savings
    account statement
Key Words to Know
account statement (p. 202)
A bank statement that shows all deposits,
withdrawals, and interest credited to an
account.
     Formula
New Balance = Previous Balance + Interest + Deposits – Withdrawals
Example 1
Your savings account statement shows a
previous balance of $1,258.22 and $2.10 in
interest. You made deposits of $210.00,
$50.00, and $40.00. You had withdrawals of
$50.00 and $75.00.
What is your new balance?
Example 1 Answer
Step: Compute the new balance.
Previous Balance + Interest + Deposits – Withdrawals
$1,258.22 + $2.10 + ($210 + $50 + $40) – ($50 + $75) =
$1,258.22 + $2.10 + $300 – $125 = 1,435.32
Example 2
Christine Yamaguchi receives her savings
account statement quarterly. After checking
her passbook and transactions to be sure all
items have been recorded correctly, she
checks the calculations.
What is her account balance on July 1?
 Note form on page 203
Figure 5.4
Example 2 Answer
Step: Find the new balance.
Previous Balance + Interest + Deposits – Withdrawals
$274.50 + $4.11 + ($250 + $125 + $80) – $100.00
= $633.61
Practice 1
       Make a saving register for:

 Teresa Estrada received her savings
 account statement. Her previous balance
 was $2,039.63.
 On May 31 her account earned $3.39 in
 interest.
 On June 5 she made a deposit of $708, and
 on June 14 she deposited $375.
                                     Continue…
Practice 1 (cont.)
On June 28, she withdrew $1,412.56 to
purchase new kitchen appliances.
What is the balance in her account on each
day in which a transaction occurred?
Practice 1 Answer
May 31: $2,043.02
June 5: $2,751.02
June 14: $3,126.02
June 28: $1,713.46
Homework page 203-204 #4-11

				
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