Question

A credit card had a $294 balance on March 5. A purchase of $159 was made on March 12, and a payment of $150 was made on March 28. Find the average daily balance of the billing date is April 5.

Answer 1

$378.39

Explanation:

The balance was $294 for 7 days, $453 for 16 days, $303 for 8 days, so the average daily balance is ...

(7(294) +16(453) +8(303))/(7+16+8) = 11730/31 = 378.39

The average daily balance for the billing period was $378.39.