True or false?
Intentionally writing a check on an account with insufficient funds is allowed under certain conditions.
I say false?
Ben Spender writes a $50 check which is returned by his bank with additional charges. The company he wrote the check to, Art Supply Inc., also charges $20 for returned checks, which of the following represents the amount Ben must have to balance his debts.
more than $70, less than $70, $70.
I say $70?
Find the interest due on $800 at 12% for 120 days?
$34.00, $32.00, or $30.00
I'm not sure how to figure this one out?
Thank you.
The first is right.
The second is wrong.
The third:
800 * 0.12 = $96
96/3 = $32
This assumes a 360-day year.
False.
Intentionally writing a check on an account with insufficient funds is not allowed under any conditions. It is considered a form of fraud and can result in legal consequences.
For the second question:
The amount Ben must have to balance his debts is more than $70.
The original check amount was $50, and the bank charged additional fees, but the question doesn't specify the amount. So, let's assume the bank charges $25. In addition, Art Supply Inc. charges $20 for returned checks. Therefore, Ben would need to have at least $70 ($50 check + $25 bank charges + $20 Art Supply Inc. charges) to balance his debts.
For the third question:
To find the interest due, you can use the simple interest formula: Interest = Principal × Rate × Time.
Principal (P) = $800
Rate (R) = 12% = 0.12 (as a decimal)
Time (T) = 120 days ÷ 365 (assuming a year has 365 days)
Calculating the interest:
Interest = $800 × 0.12 × (120/365)
Please note that the time needs to be converted to a decimal portion of a year.
After calculating the expression, you will find that the interest due is approximately $30.00.
Therefore, the correct answer is $30.00 for the interest due on $800 at 12% for 120 days.
You are correct, intentionally writing a check on an account with insufficient funds is generally not allowed and is considered illegal.
In the scenario you mentioned, Ben Spender wrote a $50 check that was returned by his bank. Art Supply Inc. also charged him an additional $20 for the returned check. Therefore, to balance his debts, Ben must have more than $70.
To calculate the interest due on $800 at 12% for 120 days, we can use the formula:
Interest = Principal x Rate x Time
Where:
Principal = $800
Rate = 12% (which can be written as 0.12)
Time = 120 days (which can be written as 120/365 in years)
Using this formula, the interest due can be calculated as follows:
Interest = $800 x 0.12 x (120/365)
Interest = $26.30 (rounded to the nearest cent)
Therefore, the correct answer is not listed, but the closest option is $30.00.