2. carmine has $45,000 in a savings account and $225,000 in an ira retirement account. how much of their…

2. carmine has $45,000 in a savings account and $225,000 in an ira retirement account. how much of their deposits will they receive if the bank fails?

2. carmine has $45,000 in a savings account and $225,000 in an ira retirement account. how much of their deposits will they receive if the bank fails?

Answer

Explanation:

Step1: Know FDIC insurance limit

The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category. Here, the savings account and IRA are different account - ownership categories.

Step2: Calculate total insured amount

The savings account has $45,000 and the IRA has $225,000. Both amounts are within the FDIC insurance limit for their respective account - ownership categories. So the total amount Carmine will receive is the sum of the amounts in the two accounts. $45000 + 225000=270000$

Answer:

$270,000$