Question

James had $41 in his bank account. He bought an $89 skateboard from a skate shop and paid with a check. He thought the shop would take a few days to deposit the check. He knows he will have enough money to cover the amount of

the check once his paycheck is deposited, but he received a text notification the next day that his account balance was negative $68
How much was James charged for an overdraft fee?

Answer 1

$20

Explanation:

You want the amount of the overdraft fee if an $89 check written against a balance of $41 resulted in an account balance of -$68.

New balance

The new balance in James's account is ...

old balance - check written - overdraft fee = new balance

41 - 89 - fee = -68

fee = 68 + 41 - 89 = 20

James was charged an overdraft fee of $20.

<95141404393>