Question

Many bank accounts never go below zero. But some banks will allow a negative balance, at least for a short time, called an overdraft. It means someone has taken out, or 'drafted', more money than was in the account to begin with. Joshua's account went into overdraft. To get back to a positive balance, he deposited money at a steady rate of $22.5 per week. After 4 weeks, he had $69.21 in the account. What was the balance when the account went into overdraft?

Answer 1

Joshua deposited a total of $90 over 4 weeks at a rate of $22.5 per week. With a current balance of $69.21, his overdraft balance was -$20.79.

Step-by-step explanation:

To determine the balance Joshua had when his account went into overdraft, we need to calculate how much money he deposited over the 4 weeks and then subtract this from his current positive balance. Joshua deposited money at a steady rate of $22.5 per week. Over 4 weeks, this amounts to a total deposit of 4 weeks × $22.5/week = $90.

Since Joshua's account balance after 4 weeks is $69.21, we can determine the overdraft balance as follows:

• Subtract the total deposit from the current balance: $69.21 - $90 = -$20.79.

Therefore, when Joshua's account went into overdraft, the balance was -$20.79.