Answered

Danielle has \$127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following transactions:




Transaction		Debit (\$)Credit (\$)

Birthday check		...75.00

Night out		66.14--

Garage sale proceeds		...121.58

Charitable donation		42.25...

Doctor's appointment		115.30--






At the end of the week, how much money is in Danielle's account?


A\$99.91
B\$27.11
C\$184.41
D\$142.16

Verified Answer :

  • Identify the initial balance, which is \(\$127.02\).
  • Sum the total credits (\(\$75.00 + \$121.58 = \$196.58\)) and the total debits (\(\$66.14 + \$42.25 + \$115.30 = \$223.69\)).
  • Apply the formula for the final balance: \(\$127.02 + \$196.58 - \$223.69 = \$99.91\).
  • The final balance is \(\boxed{\$99.91}\).

Explanation

  1. Analysis of Financial Transactions

To find Danielle's final bank account balance, we start with her initial balance and apply all the financial transactions recorded over the week.

The initial balance is \(\$127.02\).
Transactions are categorized as either credits (money added to the account) or debits (money removed from the account).

The credits are:

  • Birthday check: \(\$75.00\)
  • Garage sale proceeds: \(\$121.58\)

The debits are:

  • Night out: \(\$66.14\)
  • Charitable donation: \(\$42.25\)
  • Doctor's appointment: \(\$115.30\)

We first calculate the total amount added to the account (total credits) and the total amount subtracted from the account (total debits).

  1. Calculation of Final Balance

Next, we sum the credits and the debits.

Total credits = \(\$75.00 + \$121.58 = \$196.58\)
Total debits = \(\$66.14 + \$42.25 + \$115.30 = \$223.69\)

Now, we calculate the final balance using the formula:
\(\text{Final Balance} = \text{Initial Balance} + \text{Total Credits} - \text{Total Debits}\)

Substituting the values:
\(\text{Final Balance} = \$127.02 + \$196.58 - \$223.69\)
\(\text{Final Balance} = \$323.60 - \$223.69 = \$99.91\)

Thus, at the end of the week, Danielle has \(\$99.91\) in her account, which corresponds to option (a).

Examples

Keeping track of account balances is a foundational skill in personal finance. For example, if you receive a birthday gift or earn money from selling items, those are credits to your account. Conversely, paying for a dinner or a medical visit are debits. By carefully logging these inflows and outflows, you can ensure you always know exactly how much money you have available for future expenses, which helps in effective budgeting and avoiding overdrafts.

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