Question

Nia wants to check whether the finance charge applied in her credit card statement is correct. To do this, she needs to calculate the average daily balance in her account for the previous billing cycle. She made a table to do the calculation. The billing cycle is 31 days. What was Nia’s average daily balance in this billing cycle? Days Balance 7 $745.00 10 $585.15 7 $245.20 7 $90.75 A. $13,420.00 B. $13,418.00 C. $800.00 D. $432.84 E. $430.48

Answer 1

To calculate the average daily balance in Nia's credit card account for the previous billing cycle, you need to sum up the products of the balances and the number of days for each entry in the table, and then divide the sum by the total number of days in the billing cycle. The average daily balance in this case is $432.90.

Step-by-step explanation:

To calculate Nia's average daily balance for her credit card statement, you need to sum up the products of the balances and the number of days for each entry in the table, and then divide the sum by the total number of days in the billing cycle.

Here are the calculations:

(7 * $745.00) + (10 * $585.15) + (7 * $245.20) + (7 * $90.75) = $13,420.00

Average daily balance = $13,420.00 / 31 = $432.90

So, the correct answer is

D. $432.90

.

Answer 2

The average daily balance for Nia's credit card during the billing cycle is calculated by multiplying each daily balance by the number of days, summing these amounts, and then dividing by the total days in the cycle. The correct answer is D. $432.84.

Step-by-step explanation:

To calculate Nia's average daily balance during the billing cycle, we need to multiply each balance by the number of days that balance was maintained, then sum up these products, and lastly divide by the total number of days in the billing cycle. Nia has balances for four different periods within the billing cycle, which we will calculate and then find the average.

1. Multiply the balance by the number of days it was maintained: ($745.00 × 7 days) + ($585.15 × 10 days) + ($245.20 × 7 days) + ($90.75 × 7 days).
2. Sum of the products: ($5,215.00) + ($5,851.50) + ($1,716.40) + ($635.25) = $13,418.15.
3. Divide by the number of days in the billing cycle: $13,418.15 ÷ 31.
4. Resulting average daily balance: $432.84.

The correct answer is D. $432.84. This is the average daily balance for Nia's credit card statement in the given billing cycle.