Question

Dominic is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Dominic’s spending pattern: Day Debit ($) Credit ($) Monday 158 --- Tuesday 69 44 Wednesday 175 --- Thursday 131 38 Friday --- 53 Saturday 22 14 If the bank charges Dominic an overdraft fee of $25 every time he overdraws his account, and Dominic overdrew his account on Thursday but not on Saturday, which of the following is a possible amount of money that Dominic could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees. a. $500 b. $480 c. $435 d. $400 Please select the best answer from the choices provided A B C D

Answer 1

Answer:

The correct answer would be option C, $435

Explanation:

In real financial banking transactions, Debits are basically the withdrawals and credits are deposits.  

Because the problem states that there was an over withdrawal on Thursday but not on Saturday, this means that the ending balance on Thursday was a negative balance. On Saturday, the remaining balance was a positive balance. 500 and 480 as a beginning balance doesn't give a negative balance on Thursday. 400 as a beginning balance gives a negative balance on Thursday as well as Saturday.

   

                    Debit    Credit    Balance

Sunday                                      435

Monday        158                        277

Tuesday        69          44           252

Wednesday  175                           77

Thursday       131         38             -16

                      25                          -41 Overdraft fee

Friday                          53              12

Saturday         22         14               4

So the correct answer is option C, $435