# 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.
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
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
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:

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?
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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