Question

When the day begins, Joshua has $116 in his checking account, and he has overdraft protection. Before school, he buys his cousin a round trip bus fare for $4 using his debit card. He then uses the card to get gas for his car for $43.09. Once the banks open, a check he gave the school for his senior yearbook clears, and $75 comes out of his account, leaving him with $-6. Joshua's Netflix account subscription is automatically debited today, too, so another $10 leaves the account, bringing the balance to $-16. After school, he heads out with friends and uses his debit card to buy a $3 coffee. He sends a person-to-person payment of $15 to his friend Bryant for his share of dinner. Finally, he finishes out the day with some shopping to buy new soccer gear for $35, leaving the balance at $-69.

If Joshua's checking account is subject to an overdraft fee at Citibank, how much would the overdraft fee be based on the provided scenario?

A. $25
B. $30
C. $35
D. $40

Answer 1

Option (C), In this scenario, Joshua's checking account balance goes from $116 to -$69, resulting in an overdraft of $69. If the checking account is subject to an overdraft fee at Citibank, the fee would typically be a fixed amount, such as $35.

Step-by-step explanation:

In this scenario, Joshua's checking account balance goes from $116 to -$69, resulting in an overdraft of $69.

If the checking account is subject to an overdraft fee at Citibank, the fee would typically be a fixed amount, such as $35, as mentioned in the options given for this question.

Therefore, the overdraft fee based on the provided scenario would be $35 (option C).