Question

Using the table, what is the average daily balance of the credit card for the May 1 - May 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. Day Activity Adjustment Closing Balance 1 2,0006. Payment. 400. 160011 Payment. 250. 135021. Purchase. +200. 1550

Answer 1

There are 5 days ( 1-5) with a balance of 2000 5 * 2000 = 10000

There are 5 days (6-10) with a balance of 1600 5*1600 = 8000

There are 10 days (11-20) with a balance of 1350 10 * 1350 = 13500

There are 11 days (21-31) with a balance of 1550 11* 1550 =17050

10000+ 8000+13500+ 17050 = 48550

Divide this by 31 days

1566.129032

The average daily balance is 1566.13 per day