Anand’s monthly bank statement showed the following deposits and withdrawals:
$5.18, -$69.31, – $9.74, $58.38,
-$95.69
If Anand’s balance in the account was $49.41 at the beginning of the month, what was the account balance at the end of the month?
The correct answer and explanation is:
To calculate Anand’s account balance at the end of the month, begin by adding up all the deposits and withdrawals for the month, and then adjust the starting balance accordingly.
Here is a breakdown of the deposits and withdrawals:
- Deposits:
- $5.18
- $58.38
- Withdrawals:
- -$69.31
- -$9.74
- -$95.69
Now, sum the deposits: 5.18+58.38=63.565.18 + 58.38 = 63.56
Next, sum the withdrawals: −69.31+(−9.74)+(−95.69)=−174.74-69.31 + (-9.74) + (-95.69) = -174.74
Add the total deposits to the starting balance: 49.41+63.56=112.9749.41 + 63.56 = 112.97
Then, subtract the total withdrawals: 112.97−174.74=−61.77112.97 – 174.74 = -61.77
Therefore, Anand’s account balance at the end of the month is -$61.77.
Explanation:
To solve this problem, first recognize that deposits are positive amounts and withdrawals are negative amounts. The starting balance is adjusted by first adding the deposits and then subtracting the withdrawals. After combining all the numbers, the result is a negative balance, indicating that Anand has overspent or withdrawn more than the initial balance and deposits combined.
This is a simple way of tracking financial transactions: add deposits to the balance and subtract withdrawals.