Question

Emma borrowed $312 from her sister. She determines that she can pay her back in thirteen months worth of allowance. What effect will Emma’s repayment have on her monthly bank account?

Answer 1

This repayment will ultimately reduce her monthly bank account balance

Explanation:

This repayment will ultimately reduce her monthly bank account balance. That is because the steady monthly income that Emma would normally receive to her bank account will be taken out of her account and sent to her sister's account. This will continue to occur for 13 months until Emma pays back the $312 that she borrowed from her sister. Once the 13 months are over and her debt is paid, her monthly bank balance will return to normal and begin increasing as her income payments get deposited.