Question

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.

Answer 1

Total spent = 353.76 + 32.79 + 60.26 + 55.62 + 80.40 + 35.77 = 618.60
Remaining balance = 899.83 − 618.60 = 281.23

Her share $305.22 > $281.23, so she cannot afford it — the purchase would overdraw the account.

Answer: c.