Question

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:

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

Start: $66.50

Monday: 66.50 − 60.33 = 6.17; 6.17 + 80.75 = 86.92
Tuesday: 86.92 − 54.45 = 32.47
Wednesday: 32.47 − 49.20 = −16.73 → first time balance goes negative

Answer: a. Wednesday