Question

Anna has $274.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases:

Day Debit ($) Credit ($)
Monday 194.62 35.45
Tuesday --- 11.20
Wednesday 145.86 24.75
Thursday 53.35 33.80
Friday 31.60 45.77
Saturday 12.90 61.63

Anna gets an overdraft fee if her balance at the end of the day is negative. On which day or days does Anna get charged an overdraft fee?

i. Wednesday
ii. Thursday
iii. Friday

a. i only
b. i and ii
c. ii and iii
d. iii only

Please select the best answer from the choices provided.
1) i only
2) i and ii
3) ii and iii
4) iii only

Answer 1

Anna is charged an overdraft fee on Thursday and Friday, after the debits and credits are accounted for, leading to a negative account balance on both days.

Step-by-step explanation:

To determine on which day or days Anna gets charged an overdraft fee, we need to calculate her daily bank balance accounting for both debits (money going out) and credits (money coming in). The initial balance is $274.00 on Sunday. We will subtract debits from and add credits to the previous day's balance to find the new balance.

• Monday: $274.00 + $35.45 - $194.62 = $114.83 (No overdraft fee)
• Tuesday: $114.83 + $11.20 = $126.03 (No overdraft fee)
• Wednesday: $126.03 + $24.75 - $145.86 = $4.92 (No overdraft fee)
• Thursday: $4.92 + $33.80 - $53.35 = -$14.63 (Overdraft fee)
• Friday: -$14.63 + $45.77 - $31.60 = -$0.46 (Overdraft fee)
• Saturday: -$0.46 + $61.63 - $12.90 = $48.27 (No overdraft fee)

An overdraft fee is charged on Thursday and Friday.