Question

Anna has $274.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 194.62 35.45 Tuesday --- 11.20 Wednesday 145.86 24.75 Thursday 53.35 33.80 Friday 31.60 45.77 Saturday 12.90 61.63 Anna gets an overdraft fee if her balance at the end of the day is negative. On which day or days does Anna get charged an overdraft fee? I. Wednesday II. Thursday III. Friday a. I only b. I and II c. II and III d. III only

Answer 1

The Correct answer is C) ll and lll

Answer 2

Answer:

c. II and III

Explanation:

Anna begins with $274.  On Monday, she has a debit of 194.62 followed by a credit of 35.45:

274-194.62 = 79.38 + 35.45 = $114.83

This is not a negative balance, so there is no overdraft.

On Tuesday, she has no debits and a credit of 11.20:

$114.83 + 11.20 = $126.03

No negative balance means no overdraft fee.

On Wednesday, she has a debit of 145.86 and a credit of 24.75:

126.03 - 145.86 = -19.83 + 24.75 = $4.92

No negative balance means no overdraft fee.

On Thursday, she has a debit of 53.35 and a credit of 33.80:

4.92 - 53.35 = -48.43 + 33.80 = -14.63

This is a negative balance, so Anna will have an overdraft fee on Thursday.

On Friday, she has a debit of 31.60 and a credit of 45.77:

-14.63 - 31.60 = -46.23 + 45.77 = -0.46

This is a negative balance, so Anna will have an overdraft fee on Friday.

On Saturday, she has a debit of 12.90 and a credit of 61.63:

-0.46 - 12.90 = -13.36 + 61.63 = $48.27

No negative balance means no overdraft fee.

This means she overdrafts on Thursday and Friday.