Patty has a checking account at a local bank.
· the monthly checking fee is $10
· $0.30 for each check she writes
· Nonbank ATM withdrawals cost $2.50
· her beginning balance was $2,740.50
· she deposited $1,325.00
· withdrew $475.00 in cash from a nonbank ATM
· she wrote a check for $125.00
· transferred $500.00 to her savings account
What is her checking account balance at the end of the month?
A $2,422.30
B $2,952.70***
C $3,401.20
D $3,520.50
cheeze says its b/$2,952.70
Let's calculate Patty's checking account balance step-by-step:
1. Starting balance: $2,740.50
2. Deposit: + $1,325.00
Balance so far: $4,065.50
3. Nonbank ATM withdrawal fee: - $2.50
Balance so far: $4,063.00
4. Check fee for writing a check: - $0.30
Balance so far: $4,062.70
5. Check amount: - $125.00
Balance so far: $3,937.70
6. Transfer to savings account: - $500.00
Balance so far: $3,437.70
Therefore, Patty's checking account balance at the end of the month is $3,437.70.
The correct answer is C) $3,401.20.
To calculate Patty's checking account balance at the end of the month, we need to keep track of all the transactions and apply them to the beginning balance.
Starting balance: $2,740.50
Deposit: + $1,325.00
Withdrawal from non-bank ATM: - $475.00
Check written: - $125.00
Transfer to savings account: - $500.00
First, add the deposit to the starting balance:
$2,740.50 + $1,325.00 = $4,065.50
Next, subtract the withdrawal from the non-bank ATM:
$4,065.50 - $475.00 = $3,590.50
Then, subtract the amount of the check written:
$3,590.50 - $125.00 = $3,465.50
Finally, subtract the transfer to the savings account:
$3,465.50 - $500.00 = $2,965.50
Therefore, Patty's checking account balance at the end of the month is $2,965.50, which is closest to option B: $2,952.70.