Question

question 5 of 10
ramons checking account requires that he maintain a minimum balance of $2000 to avoid a monthly service fee, and his balance at the beginning of this month was $2183.62. if ramons transactions so far this month have been a direct deposit of $562.56 on the 3rd of the month, a check written by ramon on the 6th of the month to his landlord for $750 that cleared the next day, and a cash deposit of $100 on the 9th of the month, has ramon been able to avoid the monthly service fee?

a. no, because his lowest balance so far this month has been $1996.18.

b. yes, because his highest balance so far this month has been $2746.18.

c. no, because his highest balance so far this month has been $2746.18.

d. yes, because his lowest balance so far this month has been $1996.18.

Explanation:

Step1: Calculate balance after direct deposit

Initial balance: $2183.62. Direct deposit: $562.56. New balance: $2183.62 + $562.56 = $2746.18.

Step2: Calculate balance after check to landlord

After direct deposit balance: $2746.18. Check amount: $750. New balance: $2746.18 - $750 = $1996.18.

Step3: Calculate balance after cash deposit

After check balance: $1996.18. Cash deposit: $100. New balance: $1996.18 + $100 = $2096.18.

Step4: Determine minimum balance

The balances are $2183.62, $2746.18, $1996.18, $2096.18. The lowest is $1996.18, which is less than $2000. So he can't avoid the fee.

Answer:

A. No, because his lowest balance so far this month has been $1996.18.