Question

1) Supposed that you have an account with the overdraft

protection. Your account balance is $40.00, you spend
$85.00 at a grocery stores. The bank charge you $30.00
every time you overdraft the account. What is your
account balance after the overdraft and the bank fee?
A) -$60.00
B) -$75.00
C) -$80.00
D) -$70.00

Answer 1

-75 is the answer because 40+-85+-30=-75

Answer 2

Answer: B) -$75.00

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Step-by-step explanation:

Draw a vertical number line. Plot 40 on this line. Then move down 85 units to arrive at 40-85 = -45. The negative indicates that you're in debt.

Then move down another 30 due to the overdraft fee and we have -45-30 = -75 as the bank balance.

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Put another way:

Start at $40. If you spend $40, then your balance is $0. You need to spend another $45 to get all of the groceries (since the grocery bill is 40+45 = 85 dollars). That's where the -45 comes from, to indicate you're 45 dollars in debt. This is before the overdraft fee kicks in. Adding on that fee gets a total debt of 45+30 = 75 dollars. So that's why the final balance is -75 dollars.