Question

On Monday your bank account balance was -$12.58. Because you didn't realize this you wrote a $30.72 check. A. What is the new balance in your checking account? B. The bank charges a $25 fee for paying a check on a negative balance. What is the balance in your checking account after this fee? C. How much money do you need to deposit to bring your account balance back up to $0 after the fee?

Answer 1

Explanation

On Monday, the bank account balance was -$12.58

A.  As you wrote a $30.72 check, so the new balance in your checking account will be: $(-12.58+30.72)dollar =18.14$ dollar

B.  The bank charges a $25 fee for paying a check on a negative balance. So, the balance in your checking account after this fee $=(18.14-25)dollar= -6.86$ dollar

C.   For bringing your account balance back up to $0 after the fee, the money need to deposit $=[0-(-6.86)]dollar =6.86$ dollar.