Question

Preston signed up for overdraft protection at his bank. This bank charges an overdraft fee of $30 for insuffcient funds. Preston has a balance of $50. He then purchased a pair of tennis shoes using his bank debit card. If the total charge for the tennis shoes is $52, what will be Presont's new balance?

Answer 1

-$32

Explanation:

Given that

Overdraft fee = $30

Preston Balance = $50

Total expenditure = $52

As per the given question the solution of new balance is provided below:-

To reach the new balance of Presont's first we need to find out the overdraft balance which is as follows:-

Overdraft balance = Balance - Total expenditure

= $50 - $52

= -$2

Since there is a balance of $50 but Pretson purchased for $52 value that results -$2 overdraft balance. In order to determine the new balance we simply added the overdraft fee and overdraft balance which is shown in negative sign.

Now according to the question the New balance of Presont's = Overdraft balance - overdraft fee

= -$2 - $30

= -$32