17.4 Paying Bills

Front

What is a check?

Back

A check is a written order directing a bank to pay a specific amount of money from a person's account to another person or business.

Front

What is one advantage of using a check to pay bills?

Back

You can pay using money in your account.

Front

What does it mean to pay with cash?

Back

Paying with cash means using physical money (coins and bills) to make a purchase.

Front

What is interest?

Back

Interest is the cost of borrowing money, usually expressed as a percentage of the amount borrowed.

Front

How do you calculate the total cost when using a credit card with interest?

Back

Multiply the amount spent by the interest rate to find the interest, then add it to the original amount.

Front

If a watch costs $112 and the interest is $0.04 per dollar, how much interest will you pay if you use a credit card?

Back

You will pay $4.48 in interest.

Front

What is a monthly payment?

Back

A monthly payment is a fixed amount of money that is paid each month towards a debt or purchase.

Front

How do you find the monthly payment for an item bought on installment?

Back

Add the total cost of the item to any additional fees, then divide by the number of months.

Front

If a printer costs $148 and shipping is $20, what is the total cost?

Back

The total cost is $168.

Front

If Paige makes four equal monthly payments for a total cost of $168, how much does she pay each month?

Back

She pays $42 each month.