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Lesson · Grade 9 · Mathematics

Bank Accounts: Deposits, Withdrawals, Fees and the Balance

  • Grade 9
  • Mathematics
  • 1 min 55 s
  • British Columbia
  • BC9-MA-31

An account record starts with an opening balance of $250.00. A $120.00 deposit, a $45.60 debit purchase, a $4.95 monthly fee and a $60.00 e-transfer each get a line, and the panel works out the new balance each time ($370.00, $324.40, $319.45) until the closing balance of $259.45, which is then checked as $250 + $120 − $110.55. It then shows two common mistakes, forgetting the fee ($264.40, $4.95 too much) and adding a withdrawal, and ends on the rule for every line: new balance = old balance + money in − money out.

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In one sentence

The question this lesson answers

An account starts the month with $250. Four transactions follow. How much is left at the end?

A transaction is money going in or out of the account. Each one gets a line in the account record.

Transcript

What the lesson says

An account starts the month with $250. Four transactions follow. How much is left at the end?

A transaction is money going in or out of the account. Each one gets a line in the account record.

The balance is the money in the account after each line. The first line is the opening balance.

First, a deposit of $120: money put into the account. Money in is added, giving $370.

Next, a debit purchase of $45.60. Paying by debit card is a withdrawal, money out, so subtract it: $324.40.

Then the bank charges a monthly fee of $4.95. A fee is money out too, leaving $319.45.

Last, a $60 e-transfer: money sent electronically to another account. Subtract it to get $259.45, the closing balance.

Check: $250 plus $120, minus the money out, $110.55, is $259.45. It matches.

A common mistake is forgetting the fee. That gives $264.40, which is $4.95 too much.

Another common mistake is adding a withdrawal. Money out is always subtracted, never added.

So on every line, the new balance is the old balance, plus money in, minus money out.

Curriculum

Where this fits

British Columbia, Grade 9

Mathematics, Financial literacy: financial literacy: simple budgets and transactionsBC9-MA-31

Next: Simple Interest: I = Prt

The outcomes and strands follow the British Columbia curriculum.

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