Anna gets an overdraft fee if her balance at the end of the day is negative. On which day or days does Anna get charged an overdraft fee?
I. Wednesday
II. Thursday
III. Friday
A. I only
B. I and II
C. II and III
D. III only
Answer (2)
Anna incurs overdraft fees on Wednesday, Thursday, and Friday due to negative balances. Therefore, the correct answer is B. I and II.
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Calculate the net change (Credit - Debit) for each day.
Calculate the balance at the end of each day by adding the net change to the previous day's balance.
Identify the days with a negative balance: Wednesday, Thursday, and Friday.
The correct answer is (c) II and III, meaning Anna gets charged an overdraft fee on Thursday and Friday: c .
Explanation
Initial Analysis Let's analyze Anna's bank balance day by day to determine when she incurs an overdraft fee. Remember, an overdraft fee is applied if her balance goes negative at the end of the day. We'll start with a zero balance and calculate the balance for each day based on the debits and credits shown in the table.
Monday's Balance First, we calculate the balance for Monday. Anna has a debit of $194.62 and a credit of $35.45. So, the net change is $35.45 - $194.62 = -$159.17. Therefore, the balance at the end of Monday is -$159.17.
Tuesday's Balance Next, we calculate the balance for Tuesday. Anna has a credit of $11.20. The balance from Monday is -$159.17. So, the balance at the end of Tuesday is -$159.17 + $11.20 = -$147.97.
Wednesday's Balance Now, let's calculate Wednesday's balance. Anna has a debit of $145.86 and a credit of $24.75. The balance from Tuesday is -$147.97. So, the net change is $24.75 - $145.86 = -$121.11. Therefore, the balance at the end of Wednesday is -$147.97 - $121.11 = -$269.08.
Thursday's Balance Moving on to Thursday, Anna has a debit of $53.35 and a credit of $33.80. The balance from Wednesday is -$269.08. So, the net change is $33.80 - $53.35 = -$19.55. Therefore, the balance at the end of Thursday is -$269.08 - $19.55 = -$288.63.
Friday's Balance For Friday, Anna has a debit of $31.60 and a credit of $45.77. The balance from Thursday is -$288.63. So, the net change is $45.77 - $31.60 = $14.17. Therefore, the balance at the end of Friday is -$288.63 + $14.17 = -$274.46.
Saturday's Balance Finally, let's calculate Saturday's balance. Anna has a debit of $12.99 and a credit of $61.63. The balance from Friday is -$274.46. So, the net change is $61.63 - $12.99 = $48.64. Therefore, the balance at the end of Saturday is -$274.46 + $48.64 = -$225.82.
Final Answer Since the balance is negative on Wednesday, Thursday, and Friday, Anna gets charged an overdraft fee on these days. Thus, the correct answer is II and III, which corresponds to option c.
Examples
Understanding bank balances and overdraft fees is crucial in personal finance. For example, if you're managing a checking account and want to avoid overdraft fees, you need to track your debits and credits carefully. By calculating your daily balance, you can ensure you have sufficient funds to cover your expenses. This is similar to balancing a budget, where you need to ensure your income exceeds your expenses to avoid debt. Knowing how to calculate these balances helps you make informed financial decisions and avoid unnecessary fees.
