Read Joshua’s scenario in the box below. Then, use the links provided to help you calculate his overdraft fees. The Scenario: ● When the day begins, Joshua has $116 in his checking account, and he has overdraft protection ● Before school he buys his cousin a round trip bus fare for $4 using his debit card ● He then uses the card to get gas in his car for $43 ● Once the banks open, a check he gave the school for his senior yearbook clears, and $75 comes out of his account ● Joshua’s Netflix account subscription is automatically debited today, too, so another $10 leaves the account ● After school he heads out with friends and uses his debit card to buy a $3 coffee ● He sends a person-to-person payment of $15 to his friend Bryant for his share of dinner ● Finally, he finishes out the day with some shopping to buy new soccer gear for $35 using his debit card at the store

On a bank account, the overdraft fees means a limited loan that is provided by a bank that allows a customer to pay for bills and other expenses when the account reaches zero.

A very good example of a bank overdraft is when we write a check for $40 when you only have $20 in your account.

Data given

Joshua has $116 in his checking account (+)

Get a gas in his car for $43 (-)

For senior yearbook clears, $75 comes out of his account (-)

Netflix account subscription $10 (-)

Debit card used to buy a $3 coffee (-)

Payment to friend $15 for his share of dinner (-)

To buy new soccer gear for $35 (-)

Existing amount in account = $116

Total Expenses = $43 + $75 + $10 + $3 + $15 + $35 = $181

Hence, Overdraft fee = $65 ($181 - $116)

Therefore, the amount of Joshua’s overdraft on his account equals $65.