Review Lesson: Key Concepts from Lessons 1-4

Lesson 1: Converting Percentages to Decimals

• Concept: Move the decimal point two places to the left when converting.
  • Examples:
    • 14% becomes 0.14
    • 86% becomes 0.86
    • 110% becomes 1.10
    • 7% becomes 0.07
    • 0.6% becomes 0.006
• Application: Used in shopping to calculate sale prices and savings.

Method 1: Three-Step Method for Calculating Sale Prices

1. Convert percentage into a decimal.
2. Multiply the original price by the decimal to find savings.
3. Subtract savings from the original price to find the sale price.

• Example Problem:
  • Original price of TV: $559
  • Discount: 20% (0.20 as a decimal)
  • Savings: $559 x 0.20 = $111.80
  • Sale Price: $559 - $111.80 = $447.20

Method 2: Single-Step Method

• Steps:
  • Subtract percentage from 100%, convert to decimal, multiply by original price.
  • Example:
    • Original price of tickets: $399
    • Discount: 15% (0.15 as a decimal)
    • Sale Price: $399 x 0.85 (100% - 15%) = $339.15

Lesson 2: Understanding Interest on Credit Cards

• Interest Calculation:

  • Interest rate: 5% (0.05 as a decimal)
  • Outstanding balance = Current balance - Payment
  • Interest = Outstanding balance x interest rate
  • Ending balance = Outstanding balance + Interest

• Example:

  • Initial balance: $125, Payment: $30
  • Outstanding Balance: $125 - $30 = $95
  • Interest: $95 x 0.05 = $4.75
  • Ending Balance: $99.75

Month 2 Example

• Carryover balance: $99.95
• Payment: $30
• Outstanding Balance: $69.75
• Interest: $3.49 (rounded from 3.4875)
• Ending Balance: $73.24

Lesson 3: Writing Checks

• Example: Dinner: $23.96, Movie: $15, Total: $38.96
• Check Writing Steps:
  • Date: Include day, month, year.
  • Payee: Full name.
  • Amount: Numerical and written form.
    • E.g., "Thirty-eight and 96/100"
  • Memo: Purpose of the check.
  • Signature: Sign the check.

Lesson 4: Filling Out a Deposit Slip

• Components:
  • Cash and check amounts.
  • Subtotal, Less Cash amount, and Total Deposit.
• Example:
  • Cash: $189
  • Checks: $40 and $45
  • Less Cash: $74
  • Total Deposit: $200

Lesson 5: Balancing a Bank Register

• Starting Balance: $134.89
• Transactions:
  • Check to Anytown Salon: $26
  • Check to "Mom": $25
  • ATM withdrawal: $40
  • Deposit/Payday: $180
• Final Balance: $223.89

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Summary

• Key Skills: Converting percentages, calculating savings, understanding interest, check writing, filling deposit slips, and balancing bank registers.
• Practical Applications: These skills are essential for financial literacy and efficient management of personal finances.