Frank has $66.50 in his account on Sunday. Over the next week, he makes the following changes to his balance via deposits and purchases:

Question

Day
Debit ($)
Credit ($)
Monday
60.33
80.75
Tuesday
54.45
---
Wednesday
49.20
15.00
Thursday
35.40
---
Friday
16.85
75.00
Saturday
80.56
---

On what day does Frank first get charged an overdraft fee?
a.
Wednesday
b.
Thursday
c.
Friday
d.
Saturday

Answer 1

To determine on which day Frank first gets charged an overdraft fee, we need to track his account balance day by day, accounting for the debits (purchases) and credits (deposits).

Starting balance on Sunday: $66.50

1. Monday:

   • Debit: $60.33
   • Credit: $80.75
   • New balance = $66.50 - $60.33 + $80.75 = $86.92

2. Tuesday:

   • Debit: $54.45
   • Credit: $0 (none)
   • New balance = $86.92 - $54.45 = $32.47

3. Wednesday:

   • Debit: $49.20
   • Credit: $15.00
   • New balance = $32.47 - $49.20 + $15.00 = -$1.73 (overdraft)

Since Frank's balance goes negative on Wednesday, he first gets charged an overdraft fee that day.

The answer is: a. Wednesday