Question

A credit card bill for $630 was due on July 1. Purchases of $365 were made on July 7, and $320 was charged on July 22. A payment of $300 was made on July 15. Find the average daily balance (in dollars) for the August 1 bill.

Answer 1

For the August 1 bill, the average daily amount is almost $51.94.

To solve this problem

Let Determine the daily balances:

• Between July 1 and July 14: $630 (the starting balance)
• The amount on July 15 is $630 - $300 (payment)
• $330 between July 16 and July 21 (no new transactions)
• July 22: $330 +$320 buy = $650
• The total from July 23 to July 31 was $650 (no additional purchases)

Add up the daily amounts:

`630 + 330 + 650 = 1610`

Now, let calculate the average daily balance:

• Average Daily Balance = 1610/31
• Average Daily Balance = 51. 94

So, For the August 1 bill, the average daily amount is almost $51.94.