Give the step-by-step reasoning process and then the final answer. Paul made two bank transfers of $90 and $60 respectively. A service charge of 2% was added to each transaction. If the second transaction was reversed (without the service charge), what is his account balance now if it was $400 before he made any of the transfers?
2% of $90 is (2 / 100) * $90 = $1.8. 2% of $60 is (2 / 100) * $60 = $1.2. The second transaction was reversed without the service charge so only a total of $90 + $1.8 + $1.2 = $93 was deducted from his account. He will have a balance of $400 - $93 = $307.
The final answer: 307.