Orrin had [tex]$541.06 in his checking account, and a check that he wrote to his landlord for $[/tex]560.00 was just deposited. This will result in which of the following fees?

A. Overdraft fee
B. ATM Fee
C. Overspending fee
D. Service fee



Answer :

To determine the fee Orrin will incur after writing a check to his landlord, we need to follow these steps:

1. Start with Orrin's initial checking account balance: [tex]$541.06. 2. Subtract the amount of the check written to the landlord from the initial balance: $[/tex]560.00.

[tex]\[ \text{New Balance} = \text{Initial Balance} - \text{Check Amount} \][/tex]

3. Perform the subtraction:

[tex]\[ \text{New Balance} = 541.06 - 560.00 \][/tex]

4. After performing the subtraction, the new balance is:

[tex]\[ \text{New Balance} = -18.94 \][/tex]

5. A negative balance indicates that Orrin's account is overdrawn. When an account is overdrawn, typically an overdraft fee is applied by the bank.

Therefore, the fee Orrin will incur is:

- Option A: Overdraft fee