Question

3. Suppose you haven't paid attention to the balance in your checking begin to overdraw the account. Assume you had $200 in your account on Friday morning and make the following charges over the weekend: Friday $100 Com Ed $150 Book Store $15 Pizza Hut $20 ATM Saturday $10 IHOP $35 Mobil Sunday $85 Woodman's $20 AMC Theater Your bank charges a $5 overdraft fee for each item (up to four per day) if your ac- count is overdrawn. There is also a consecutive-day overdraft fee of $5 per day for each day your account is overdrawn after the first day. a. If the charges go through in the order listed, calculate your balance at the end of each day.

Answer 1

C) If $ 150 are transferred from savings to checking account on Saturday the overdrawing cannot be avoided since the opening balance on Saturday morning is overdrawn by $ 125 and the charges over the weekend are $ 45 plus overdraft fees of Friday will be applicable.

Answer : end of Friday $200 $100 each day :- Saturday ($ 125) Sunday ($ 185) $ 150 $ 15 (a) Balance at the - Opening Balance It Comed +) Book Store (-) Pizza Hut (-) ATM. (-) AMC Theater (-) Ovend raft fee ( $5 for Book store, pizza hut, ATM, Ame Theater = (5x4) (-) IHOP $20. $5 $10. ($5 x 2) ($5x1) $ 10 (-) Mobil $ 35 $ 5. $ 85 (-) Consecutive day overdraft fees (-) Woodmans closing Balance $125) ($185) ($280). in the (6) If the order can be decided, it should be following way on friday : D 1.) Com Ed. 2.) Pizza Hut į This order would save 3.) ATM an overdraft fees of 4.) AMC Theater on friday. 5.) Book Store. I us $15