Question

After reading the new account insert in his monthly​ statement, Tony Mercadante determined that the FDIC considers a joint account as a separate depositor. He and his wife Cynthia have three accounts at ABC Bank​ & Trust, one joint account with a balance of ​$54 comma 158 and two individual accountsminus his has a ​$140 comma 022 balance and hers has a ​$253 comma 255 balance. What amount of FDIC coverage do Tony and Cynthia have on their​ accounts?

Answer 1

Tony $140,022 account balance fully covered

Cynthia account balance exceeded the insurance limit by $3,255

Step-by-step explanation:

Based on the information given Tony account balance of the amount of $140,022 is fully covered since it is their joint account of the amount of $54,158 which means that the amount of FDIC coverage which full meaning FEDERAL DEPOSIT INSURANCE CORPORATION that Tony have on their account balance will be the amount of $140,022 since the joint accounts are under the $250,000 FEDERAL DEPOSIT INSURANCE CORPORATION (FDCI) limit while Cynthia account balance on the other hand exceeded insurance limit by the amount of $3,255 calculated as ($253,255-$250,000) which means that their money would be covered only when Cynthia transfer some of the money into their joint account.