Problem 51 - Algebra 1: Concepts and Skills

Question

Use the table. It shows all the activity in a checking account during June. Deposits are positive and withdrawals are negative. $$ \begin{array}{|c|c|} \hline \text { Day } & {\text { Activity }} \\ \hline \text { June 6 } & {-\$ 225.00} \\ \hline \text { June 10 } & {+\$ 310.25} \\ \hline \text { June 17} & {+\$ 152.33} \\ \hline \text { June 25 } & {-\$ 72.45} \\ \hline \text { June 30 } & {-\$ 400.00} \\ \hline \end{array} $$ Find the total amount withdrawn in June.

Step-by-Step Solution

Answer

The total amount withdrawn in June was $697.45.

Step 1: Identify the Withdrawals

The withdrawals are represented by negative values in the activity. These are -$225.00 on June 6, -$72.45 on June 25, and -$400.00 on June 30.

Step 2: Add the Withdrawals

Add up all these negative values to find out the total amount withdrawn. The sum of -$225.00, -$72.45 and -$400.00 equals -$697.45. This means that a total of $697.45 was withdrawn in June.

Key Concepts

Understanding Withdrawals

Withdrawals from a checking account involve taking money out, and this activity is recorded as a negative number in account statements. When you see a negative sign next to a financial figure, it indicates that money is leaving your account rather than entering. Common reasons for withdrawals include:

• Paying bills
• Making purchases
• Transferring money to savings or another account

To calculate the total amount withdrawn over a time period, you should sum up all withdrawal amounts. For instance, if you have withdrawal transactions of \\(225.00, \\)72.45, and \\(400.00, these add up to \\)697.45 in total. This sum represents the total money taken out in transactions over the specified period.
Knowing how to spot and total your withdrawals is crucial as withdrawals decrease the balance in your checking account. Keeping track helps in ensuring you do not overdraw your account balance.

Decoding Deposits

Deposits refer to the act of adding money into your checking account, and are noted as positive values. This is the opposite of withdrawals. Deposits can happen in various forms, such as:

• Paycheck deposits
• Cash deposits
• Transfers from other accounts

Each time a deposit is made, your checking account balance increases by the same amount. For example, if your June deposits included \\(310.25 and \\)152.33 on different days, the total deposit sum for June stands at \$462.58. This sum adds to your available balance, providing you more flexibility for expenses or savings.
The ability to manage and verify deposits ensures that all funds meant for you are accurately credited to your account. This is a key aspect of maintaining financial health.

Enhancing Financial Literacy

Financial literacy is the understanding of various financial areas, including managing checking account activity with precision. It encompasses knowledge of how to track your deposits and withdrawals, which combined, affect your checking account balance. Becoming financially literate involves:

• Reading financial statements and spotting errors
• Understanding bank services and transaction fees
• Knowing how to budget expenses against income

Furthermore, financial literacy helps you in recognizing habits or patterns that could lead to overdraft fees or unnecessary account charges. It empowers you to make informed financial decisions and better plan for your future. By mastering the recording and reviewing of your checking account activities, you set a foundation for effective money management.