Question

Ramon's checking account requires that he maintain a minimum balance of $2000 to avoid a monthly service fee, and his balance at the beginning of this month was $2183.62. If Ramon's transactions so far this month have been a direct deposit of $562.56 on the 3rd of the month, a check written by Ramon on the 6th of the month to his landlord for $750 that cleared the next day, and a cash deposit of $100 on the 9th of the month, has Ramon been able to avoid the monthly service fee?

Answer 1

The answer is: No, Ramon wasn't able to avoid paying the monthly service fee.

Step-by-step explanation:

Ramon's daily balance account was:

1 - $2,183.62

3 - $2,746.18

7 - $1,996.18 His balance is below $2,000

9 - $2096.18

The minimum daily balance of $2,000 is what Ramon's bank required him to at least have in his account in order to avoid paying the monthly service fee. Since his landlord cashed the check the next day, Ramon's balance was lower than the minimum required.