Question

If your credit card balances are $400 for 5 days, $650 for 9 days, $800 for 4 days, and $725 for 12 days, what is your average daily balance?

a) $55
b) $60
c) $65
d) $70

Answer 1

To find the average daily balance, multiply each balance by the days held, sum these products, and then divide by the total number of days. The total is $19750, and over 30 days, the average daily balance is $658.33. The provided answer choices do not match this result, indicating a possible mistake in the question or options.

Step-by-step explanation:

To calculate the average daily balance on a credit card, we need to multiply each balance by the number of days it was held and then divide the sum of these products by the total number of days. Here are the detailed calculations:

• $400 balance for 5 days: $400 * 5 = $2000
• $650 balance for 9 days: $650 * 9 = $5850
• $800 balance for 4 days: $800 * 4 = $3200
• $725 balance for 12 days: $725 * 12 = $8700

Now we add up these amounts to get the total balance over the entire period:

$2000 + $5850 + $3200 + $8700 = $19750

Next, we sum the number of days each balance was held:

5 days + 9 days + 4 days + 12 days = 30 days

Finally, we divide the total balance by the total number of days to find the average daily balance:

Average Daily Balance = $19750 / 30 = $658.33

This value does not match any of the multiple-choice answers provided, which suggests a possible error in the question or answer choices. It's important to ensure that the question is correctly stated and that the answer choices contain the correct answer. If the answer choices are indeed correct, please check the calculations or the details provided in the question for accuracy.