Isabelle has $84.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases:
| Day | Debit ($) | Credit ($) |
| --------- | --------- | ---------- |
| Monday | 22.35 | - |
| Tuesday | 47.60 | 10.29 |
| Wednesday | 15.44 | - |
| Thursday | 11.25 | --- |
| Friday | 9.78 | 22.69 |
| Saturday | 30.54 | 18.86 |
On which day or days does Isabelle get charged an overdraft fee?
I. Thursday
II. Friday
III. Saturday
a. I only
b. I and III
c. II and III
d. III only
Please select the best answer from the choices provided.
Answer (1)
Calculate Isabelle's balance after each day's transactions.
Determine if the balance falls below $0 on any day.
Identify Thursday and Saturday as the days with negative balances.
The final answer is that Isabelle gets charged an overdraft fee on Thursday and Saturday: b . I an d III .
Explanation
Initial Analysis Let's analyze Isabelle's account balance day by day to determine when she might have been charged an overdraft fee. Remember, an overdraft fee is charged when the account balance goes below $0.
Sunday's Balance On Sunday, Isabelle starts with a balance of $84.00 .
Monday's Balance On Monday, Isabelle's balance changes due to a debit of $22.35 . So, the balance at the end of Monday is: 84.00 − 22.35 = 61.65 .
Tuesday's Balance On Tuesday, Isabelle has a debit of $47.60 and a credit of $10.29 . The balance at the end of Tuesday is: 61.65 − 47.60 + 10.29 = 24.34 .
Wednesday's Balance On Wednesday, Isabelle has a debit of $15.44 . The balance at the end of Wednesday is: 24.34 − 15.44 = 8.90 .
Thursday's Balance On Thursday, Isabelle has a debit of $11.25 . The balance at the end of Thursday is: 8.90 − 11.25 = − 2.35 . Since the balance is negative, Isabelle is charged an overdraft fee on Thursday.
Friday's Balance On Friday, Isabelle has a debit of $9.78 and a credit of $22.69 . The balance at the end of Friday is: − 2.35 − 9.78 + 22.69 = 10.56 .
Saturday's Balance On Saturday, Isabelle has a debit of $30.54 and a credit of $18.86 . The balance at the end of Saturday is: 10.56 − 30.54 + 18.86 = − 1.12 . Since the balance is negative, Isabelle is charged an overdraft fee on Saturday.
Conclusion Therefore, Isabelle is charged an overdraft fee on Thursday and Saturday.
Examples
Understanding bank balance calculations is essential for managing personal finances. For example, if you start with $500 in your account and spend $150 on groceries and $200 on rent, you can calculate your remaining balance by subtracting these expenses: $500 − $150 − $200 = $150 . This helps you track your spending and avoid overdraft fees, ensuring you stay within your budget and maintain a healthy financial standing. Knowing how to calculate your balance after debits and credits is a fundamental skill for financial literacy.
