Question

You deposited a check for $1,200 into your checking account that had a balance of $625 and it "bounced". You had written checks for $450, $225, $215, and $187. Your bank will pay the largest check that you wrote first. Your account is overdrawn, and the remaining checks written to pay monthly bills did not clear. Your bank charged you a $35 overdraft fee and each of the remaining creditors receiving bounced checks charged you a $25 late payment fee. What did the $1,200 check that "bounced" on you cost you?

Answer 1

Answer:

total cost = $110

Step-by-step explanation:

Your bank will charge you $35 as overdraft fee.

The bank will only pay one check for $450, so that means that 3 more checks will remained unpaid. Since your creditors charge you $25 per bounced check, then they will charge you 3 x $25 = $75.

Total costs = $35 + $75 = $110