If $850 is deducted each month for 12 months from your checking account to pay your mortgage, what impact will it have on your checking account balance?
Responses
The monthly deduction of $850 for 12 months will decrease your checking account balance by a total of $10,200.
To determine the impact on your checking account balance, you subtract the total amount deducted from the initial balance.
Initial balance: $0
Amount deducted each month: $850
Number of months: 12
Total deducted: $850 x 12 = $10,200
Checking account balance after deduction: $0 - $10,200 = -$10,200
Therefore, the impact on your checking account balance would be a negative balance of $10,200.
To find the impact on your checking account balance, you need to determine the total amount deducted over the 12 months and then subtract it from your initial checking account balance.
First, calculate the total amount deducted over 12 months: $850 x 12 = $10,200.
Next, subtract the total amount deducted from your initial checking account balance to find the impact on your balance.
For example, if your initial checking account balance was $15,000, the calculation would be: $15,000 - $10,200 = $4,800.
Therefore, the impact on your checking account balance after deducting $850 each month for 12 months would be a decrease of $10,200, resulting in a new balance of $4,800.