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?
If $850 is deducted each month for 12 months from your checking account to pay your mortgage, the impact on your checking account balance would be a decrease of $10,200 ($850 x 12 months).
To determine the impact on your checking account balance, we need to consider the initial balance and the deductions made for the mortgage.
Let's assume the initial balance in your checking account is $X.
Each month, $850 is deducted from your checking account for 12 months to pay your mortgage.
So, the total deductions for the year would be $850/month * 12 months = $10,200.
To determine the final balance in your checking account, we subtract the total deductions from the initial balance:
Final balance = Initial balance - Total deductions
Final balance = $X - $10,200
So, the impact on your checking account balance is a decrease of $10,200.
To determine the impact on your checking account balance, you need to know the initial balance of your checking account. Let's assume your initial checking account balance is $5,000.
To find the final balance after deducting $850 each month for 12 months, you can calculate the total deductions by multiplying the monthly deduction ($850) by the number of months (12):
Total deductions = $850 * 12 = $10,200
Finally, subtract the total deductions from the initial balance to find the remaining balance in your checking account:
Remaining balance = Initial balance - Total deductions
Remaining balance = $5,000 - $10,200 = -$5,200
The impact on your checking account balance would be a negative balance of -$5,200. This means that after 12 months of deducting $850 each month, your checking account balance would be overdrawn by $5,200.