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The federal deposit insurance corporation insures deposits up to $250,000 per person per financial institution. suzanne has $514,000 in a joint account with her husband, ted. how much is not covered by fdic insurance?

A. $15,050
B. $0
C. $578,500
D. $250,000
E. $14,000

1 Answer

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Final answer:

Suzanne and Ted have a joint account with $514,000. Individually, each is covered for $250,000 by the FDIC. Therefore, $14,000 of their joint account balance is not insured by the FDIC.

Step-by-step explanation:

The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per person per financial institution. For a joint account, each co-owner is entitled to the same maximum insured amount separately. Suzanne and her husband, Ted, have a joint account with a balance of $514,000. Since both Suzanne and Ted are covered independently, they will each have an insurance limit of $250,000 on the joint account.

Suzanne is insured for $250,000, and Ted is also insured for $250,000. The total amount that could be covered for their joint account by the FDIC is therefore $500,000. As their account holds $514,000, the math to find out how much is not covered by FDIC insurance is as follows:
$514,000 (total in account) - $500,000 (insured amount for both) = $14,000 not covered by FDIC insurance.

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