Anna has $274.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases:

Question

Day
Debit ($)
Credit ($)
Monday
194.62
35.45
Tuesday
---
11.20
Wednesday
145.86
24.75
Thursday
53.35
33.80
Friday
31.60
45.77
Saturday
12.90
61.63

Anna gets an overdraft fee if her balance at the end of the day is negative. On which day or days does Anna get charged an overdraft fee?
I. Wednesday
II. Thursday
III. Friday
a.
I only
b.
I and II
c.
II and III
d.
III only

Answer 1

Let's calculate Anna's balance at the end of each day to determine if she incurs any overdraft fees.

Initial balance on Sunday:

• Balance = $274.00

Monday

• Debit: $194.62
• Credit: $35.45
• Balance = $274.00 - $194.62 + $35.45 = $115.83

Tuesday

• Debit: $0.00
• Credit: $11.20
• Balance = $115.83 + $11.20 = $127.03

Wednesday

• Debit: $145.86
• Credit: $24.75
• Balance = $127.03 - $145.86 + $24.75 = $5.92

Thursday

• Debit: $53.35
• Credit: $33.80
• Balance = $5.92 - $53.35 + $33.80 = -$13.63 (Overdraft)

Friday

• Debit: $31.60
• Credit: $45.77
• Balance = -$13.63 - $31.60 + $45.77 = $0.54

Saturday

• Debit: $12.90
• Credit: $61.63
• Balance = $0.54 - $12.90 + $61.63 = $49.27

Now, let's summarize which days Anna gets charged an overdraft fee:

• Wednesday: Balance = $5.92 (not negative)
• Thursday: Balance = -$13.63 (overdraft)
• Friday: Balance = $0.54 (not negative)

Anna only incurs an overdraft fee on Thursday.

Thus, the answer is: c. II only