Question

For days 1-15, you have a balance of $500. You make a purchase of $25 on your credit card on day 16. You make a payment on day 23 of $250. On day 28, you make a purchase for $75. No additional payments or purchases are made for the month of 30 days. Find the average daily balance. For days 1-15, you have a balance of $500. You make a purchase of $25 on your credit card on day 16. You make a payment on day 23 of $250. On day 28, you make a purchase for $75. No additional payments or purchases are made for the month of 30 days. Find the average daily balance.

Answer 1

The average daily balance for the month is $108.33. Calculated by summing daily balances and dividing by 30 days, considering purchases, and payments on a credit card.

The average daily balance for your credit card. Here's how:

Step 1: Calculate the daily balances

* Days 1-15: $500 (initial balance)

* Day 16: $500 + $25 = $525 (purchase)

* Days 17-22: $525 (no changes)

* Day 23: $525 - $250 = $275 (payment)

* Days 24-27: $275 (no changes)

* Day 28: $275 + $75 = $350 (purchase)

* Days 29-30: $350 (no changes)

Step 2: Sum the daily balances

$500 (days 1-15) + $525 (day 16) + $525 (days 17-22) + $275 (day 23) + $275 (days 24-27) + $350 (day 28) + $350 (days 29-30) = $3250

Step 3: Divide the sum by the number of days

$3250 / 30 days = $108.33

Therefore, your average daily balance for the month is $108.33.