Question

When signing up for a new checking account you answer "No" and opt out of overdraft protection. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?

Answer 1

Answer:

You may likely be charged an Overdraft fee or amount on each of the transactions carried out by you and you will have to repay the bank the overdrawn amount.

Step-by-step explanation:

Based on the information given we were told that you opt out of an overdraft protection which means that in a situation were you have the amount of $10 in your bank account in which you carried out some transactions with your debit card such as buying lunch for the amount of $12, movie ticket for the amount of $12 and as well dinner for the amount of $15 the end result is that their is likelihood of you to be charged an overdraft fee or an overdraft amount on each of the transaction carried out by you and secondly you will also need to repay or pay back the bank for the amount of money overdrawn which is $29 calculated as :

Amount overdrawn =[($12+$12+$15)-$10]

Amount overdrawn=$39-$10

Amount overdrawn =$29