Question

Adam’s bank account has a balance of $1213.69 before he starts spending money. He makes the following transactions:

Transaction
Cost ($)
Car payment
260.16
Groceries
97.98
Parking ticket
75.00
DVD box set
115.35
Antique lamp
68.53
Suit
331.84

Adam is considering getting his car a new paint job. Doing so will have a total cost of $264.83. Can Adam afford this?
a.
Yes, he can make the purchase and still have money left over.
b.
Yes, but doing so will clear out his account.
c.
No, purchasing that would overdraw his account.
d.
No, he is overdrawn already.

Answer 1

b. After the listed purchases Adam has 1213.69 − 948.86 = 264.83 left, which equals the paint job cost, so he can pay it but his account would be cleared.