John Has Overdraft Protection Which Has a Fee of Five

question 99

Multiple Choice

John has overdraft protection which has a fee of five dollars per use and a 21 percent annual interest charge. This month John's unexpected car expense caused his account to become overdrawn by $1200 for two weeks until his pay cheque was deposited. What was the total expense for John? NSF fees at his bank are $35.

• A)$35.00
• B)$257.00
• C)$14.67
• D)$9.67

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Definitions:

Units

Basic quantities or measures adopted to quantify and measure goods, services, or any other items.

Production Function

A mathematical representation that explains how inputs in production are related to the goods or services produced.

Proportions

Ratios or fractions that express the relationship of one part to another or to the whole with respect to quantity, size, or amount.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.