Question

In 2007, the FDIC’s insurance limit was $100,000 per person per bank. If Sam had a $150,000 savings account and $80,000 checking account at Bank J, a $95,000 money market account at Bank K, and a $200,000 savings account at Bank L, how much of Sam’s money was FDIC insured? a. $295,000 b. $300,000 c. $375,000 d. $525,000

Answer 1

Alright, let's look at each individual bank. For each bank, only up to 100k is insured.

Bank J = 150,000+80,000 -> 230,000 but only 100,000 is insured.
Bank K = 95,000 -> 95,000 insured.
Bank L = 200,000 -> 100,000 insured.
Adding those together...
100,000 + 95,000 + 100,000 = 295,000
So, A is the correct answer.

Answer 2

The correct answer is A. $295,000

Hope this answer helps! feel free to ask any additional questions.