Ronald is trying to reconstruct his spending pattern from May. He knows that he had $315 in his account on May 1, but after that, his receipts and balance statements are all scrambled. Here are Ronald’s records: Date Transaction Type Amount ($) 5/25 Purchase 66 5/18 Purchase 90 5/30 Purchase 188 5/24 Deposit 151 5/22 Purchase 152 5/8 Deposit 104 5/3 Purchase 175 5/6 Purchase 82 Assuming that this is a complete, if scrambled, record of Ronald’s May spending and that any overdraft fees incurred do not affect the running total, how many times did Ronald overdraw his account in May? a. Ronald never overdrew his account. b. Ronald only overdrew his account once. c. Ronald overdrew his account twice. d. Ronald overdrew his account more than twice.
Answers
Given:
Ronald's account balance on May 1 = $315
On 5/25, Purchase = 66$
On 5/18, Purchase = 90$
On 5/30, Purchase = 188$
On 5/24, Deposit = 151$
On 5/22, Purchase = 152$
On 5/8, Deposit = 104$
On 5/3, Purchase = 175$
On 5/6, Purchase = 82$
To find:
The number of times did Ronald overdraw his account in May.
Solution:
Ordering the statements,
On 5/3, Purchase = 175$
Balance = 315 - 175 = 140$
On 5/6, Purchase = 82$
Balance = 140 - 82 = 58$
On 5/8, Deposit = 104$
Balance = 104 + 58 = 162$
On 5/18, Purchase = 90$
Balance = 162 - 90 = 72$
On 5/22, Purchase = 152$
Balance = 72 - 152 = -80$
Overdrew once!
On 5/24, Deposit = 151$
Balance = -80 + 151 = 71$
On 5/25, Purchase = 66$
Balance = 71 - 66 = 5$
On 5/30, Purchase = 188$
Balance = 5 - 188 = -183$
Overdrew twice!
Hence, Twice.
(c) Ronald overdrew his account twice is the answer.