Question

7. Evan Smith's bank statement shows a previous balance of $974.95. He made deposits of $186.00 and $90.50. He wrote checks for $801.70 and $65.30. He has a $3.00 service charge and earned $0.75 in interest. What is his present balance?​

Answer 1

To find Evan Smith's present balance, let's start by adding up his deposits and subtracting his checks:
- Deposits: $186.00 + $90.50 =
$276.50 - Checks: $801.70 + $65.30
= $867.00 Next, let's consider the additional transactions: - Service charge: $3.00 (deduct this from the balance) - Interest earned: $0.75 (add this to the balance) Now, let's calculate Evan Smith's present balance: 1. Start with the previous balance: $974.95 2. Add the deposits: $974.95 + $276.50 = $1251.45 3. Subtract the checks:
$1251.45 - $867.00 = $384.45 4.
Subtract the service charge: $384.45
- $3.00 = $381.45 5. Add the interest
earned: $381.45 + $0.75 = $382.20
Therefore, Evan Smith's present balance is $382.20.