Question

Gus has a checking account balance of $75. His bank will fund the a debit card purchase that creates a negative balance up to a limit of $200, but charges a $35 fee per transaction for any purchase made in overdraft. Gus made a purchase of $100 yesterday, and another purchase of $27 today. He used a debit card for each purchase. Then, he deposited a check for $25. What is Gus' current account balance?

Answer 1

Explanation:

Starting off we have this information:

Gus has $75 (g = 75).

He can withdraw up to 200 dollars more than he has.

This is the tricky part: when they say "Made in overdraft" it can mean two things. 1. Any transaction made while already in overdraft, or 2. Any transaction made that puts him into over draft. I will provide answers for both.

Anyway, every time he purchases while in overdraft, he loses another $35.

He spends a total of $127 before overdraft fees.

He then gains $25 dollars.

So, for the first interpretation:

75-100-(27+35)+25 = $-62

For the second interpretation:

75-(100+35)-(27+35)+25 = $-97

Hope this helped.