Question

Consumers are paying record amounts of fees for overdrawing their bank accounts. In 2007, banks, thrifts, and credit unions collected $44.9 billion in overdraft fees, which is $14.4 billion more than in 2001. What is the percent of increase?

A. 32%
B. 48%
C. 56%
D. 24%

Answer 1

To find the percent increase in overdraft fees from 2001 to 2007, calculate the difference ($14.4 billion), divide by the 2001 fees ($30.5 billion), and multiply by 100 resulting in approximately 47.21%. Option B, 48%, is the closest answer.

Step-by-step explanation:

To calculate the percent of increase in overdraft fees from 2001 to 2007, we first need to find the difference between the fees collected in those years. The difference is $14.4 billion ($44.9 billion in 2007 minus $30.5 billion in 2001). Next, we divide this difference by the 2001 fees and multiply by 100 to get the percentage:

• Difference in fees = Fees in 2007 - Fees in 2001 = $44.9 billion - $30.5 billion = $14.4 billion
• Percent Increase = (Difference in fees / Fees in 2001) x 100
• Percent Increase = ($14.4 billion / $30.5 billion) x 100
• Percent Increase = 0.4721 x 100
• Percent Increase = 47.21%

The closest answer to 47.21% is B. 48%.