Question

Shakira has a balance of $202.86 in their checking account on Saturday morning. They use their debit card to pay their cell phone bill of $80.73 over the phone. They then pick up their dry cleaning, dog food at the pet store, and groceries at the market for debits of $16.89, $35.24, and $113.92 respectively. Shakira’s bank uses a balance system of deducting highest transactions first. The bank will not decline amounts under $50, but they do charge a fee for each overdraft. How many overdraft fees will Shakira incur?

1
2
3
4

Answer 1

Order highest to lowest: 113.92, 80.73, 35.24, 16.89.

Start: $202.86
- $113.92 → $88.94
- $80.73 → $8.21
- $35.24 → -$27.03 (first overdraft fee)
- $16.89 → -$43.92 (second overdraft fee)

Both under-$50 items are allowed and each causes an overdraft, so Shakira incurs 2 overdraft fees.

Answer: 2