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PCS Financial Math

Chapter 7 Vocabulary - Charge Accounts and Credit Cards

TermDefinition
credit card a card that allows the cardholder to purchase goods and services on demand by presenting it
charge account an existing line of credit, often at a particular business
finance charge interest that is charged to a credit account if the account holder does not pay off the balance in full
unpaid-balance method computing the finance charge on a credit account based on the portion of the previous balance that has not been paid
average-daily-balance method computing the finance charge on a credit account based on the average of the account balance at the end of each day of the billing period
account statement a bank statement that shows all deposits, withdrawals, and interest credited to an account
Created by: Ms.Sala