Students should understand the difference between a deposit, adding money to an account, and a withdrawal, subtracting money from an account. Their money may be stored in a bank account where checking accounts usually have frequent transactions such as deposits and withdrawals, resulting in a daily balance. Money stored in savings accounts usually have less frequent transactions such as deposits and withdrawals and most often earn interest.
Read each of the following situations and explain your thinking to each one.a) Robert earned $30 for raking his neighbor’s yard. He wants to save his money in his savings account. Would Robert make a deposit or a withdrawal?
b) Patricia wants to give her sister $20 for her birthday. When Patricia goes to the bank to get the money, would she need to make a deposit or a withdrawal?
c) Tina had a balance of $400 in her savings account. She made a withdrawal of $50. How much does she have in her savings account now? Draw a diagram and explain your thinking.d) Allen had a balance of $250 in his savings account. He visited the bank and when he left his balance was $300. Did Allen make a deposit or a withdrawal? Tell how you know.
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