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Sue’s bank account has a balance of $899.83 before she starts spending money. She makes the following transactions:

Transaction
Cost ($)
Rent
353.76
Video game
32.79
Bike maintenance
60.26
Jacket
55.62
Rug
80.40
Night out
35.77

Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this?
a.
Yes, she can make the purchase and have money left over.
b.
Yes, but doing so will clear out her account.
c.
No, making that purchase will overdraw her account.
d.
No, she is overdrawn already.

1 answer

To determine if Sue can afford the new TV, we first need to calculate her total spending after all the transactions.

Starting with her initial balance:

  • Initial balance: $899.83

Now we'll subtract the costs of each transaction:

  1. Rent: $899.83 - $353.76 = $546.07
  2. Video game: $546.07 - $32.79 = $513.28
  3. Bike maintenance: $513.28 - $60.26 = $453.02
  4. Jacket: $453.02 - $55.62 = $397.40
  5. Rug: $397.40 - $80.40 = $317.00
  6. Night out: $317.00 - $35.77 = $281.23

After these transactions, Sue has $281.23 remaining.

Next, we check if she can afford to split the cost of the new TV, which is $305.22:

Remaining balance: $281.23 Cost of TV: $305.22

Now we calculate: $281.23 (remaining) - $305.22 (TV share) = -$23.99

Since the result is negative, this means Sue does not have enough funds to afford her share of the TV. Therefore, the answer is:

c. No, making that purchase will overdraw her account.