Question

40 pts

Read the scenario. Elizabeth has a checking account at a local bank. The bank charges account holders $5 at the end of the month if their account falls below $1,000. The bank also charges $35 at the time of an overdraft and $2 for every ATM use. Elizabeth has $43 in her checking account when she begins balancing her checkbook. She received a paycheck for $216 and a check from her parents for $50. She wrote a $45 check to pay her cell phone bill and a check for $117 to pay her electric bill. She also wrote another check for $110. She used an ATM twice, withdrawing $20 each time. Two weeks later, Elizabeth received her next paycheck for $197 and another check from her parents for $50. What is the current balance in Elizabeth’s checking account?

Answer 1

Answer:200

Step-by-step explanation:

Answer 2

The current balance in Elizabeth Checking account is $200

Step-by-step explanation:

A checking account can be referred to as a deposit account held at a financial institution that used for withdrawals and deposits. Also known as demand accounts or transactional accounts, checking accounts are very liquid and can be accessed using checks, automated teller machines, and electronic debits, among other methods

Elizabeth has an initial balance of $43. She received a paycheck of $216, making her current balance to be $259. She got a check of $50 from her parent, a current balance is now $309. She paid her cell phone bill with $45, a current balance reduces to $264. She paid her electric bill at $117, her current balance reduces to $147. She wrote a check for $110, her current balance reduces further to $37. She uses an ATM twice to withdraw a total of $40, she was charged $4 for the two ATM withdraws, and $35 for overdraft. Her current balance is now (37-40-4-35 = -$42. She received her next paycheck of $197, to increase her balance to $155. She had another $50 check from her parent, to bring her balance to $205. She will be Charge $5 by the bank for not meeting a minimum of $1,000 in her account.

Therefore the current balance in Elizabeth Checking account is $200