Question

A credit card bill for $655 was due on April 14. Purchases of $152.56 were made on April 19 . The amount $23.45 was charged on April 21 and $203.36 was charged on April 28. A payment of $500 was made on April 25. Find the average daily balance (in dollars) if the next due date is May 14.

Answer 1

To find the average daily balance, calculate the balance at the end of each day and then divide the sum of these balances by the number of days. The average daily balance is $179.79.

Step-by-step explanation:

To find the average daily balance, we need to calculate the balance at the end of each day and then divide the sum of these balances by the number of days. Here are the steps:

1. Start with the initial balance of $655 on April 14.
2. On April 19, subtract the purchase amount of $152.56 from the balance.
3. On April 21, add the charge of $23.45 to the balance.
4. On April 25, subtract the payment of $500 from the balance.
5. On April 28, add the charge of $203.36 to the balance.
6. Calculate the number of days between April 14 and May 14, which is 30.
7. Divide the sum of the daily balances ($655 - $152.56 + $23.45 - $500 + $203.36) by 30 to get the average daily balance.

The average daily balance is $179.79.