Question

Using the table, what is the average daily balance of the credit card for the August 1 - August 31 billing period? Round your answer to the nearest cent. Do not include a dollar sign or comma in your answer. For example, $5,678.00 should be entered as 5678.00.

Answer 1

Day 1 to 4 = 3 days span

Day 4 to 14 = 10 days span

Day 14 to 24 = 10 days span

Day 24 to 31 = 8 days span

Total number of days = 31

The average daily balance can be calculated thus

`\begin{gathered} (3(1500)+10(1100)+10(850)+8(750))/(31) \\ =(4500+11000+8500+6000)/(31) \\ =(30000)/(31) \\ =967.742 \\ =\text{\$967.74 (Nearest cent)} \\ \text{ The answer is \$967.74 (Nearest cent)} \end{gathered}`