Final answer:
The average daily balance for the month of October is $22.05. The finance charge for the month is $4.27. The new balance on November 1 is $57.57.
Step-by-step explanation:
To determine the average daily balance for the month, we need to calculate the total balance at the end of each day and then divide it by the number of days in the month. The average daily balance is calculated by taking the sum of the daily balances and dividing it by the number of days in the month. In this case, the daily balances are as follows:
October 1: $238.30
October 2: $238.30 + $62.17 = $300.47
October 30: $300.47 - $185.00 = $115.47
To find the average daily balance, we add up the daily balances for each day and divide by the number of days in the month:
Average daily balance = ($238.30 + $300.47 + $115.47) / 31 = $22.05
Therefore, the average daily balance for the month of October is $22.05.
To calculate the finance charge for the month, we need to multiply the average daily balance by the interest rate and the number of days in the month:
Finance charge = ($22.05 * 0.06) * 31 = $4.27
Therefore, the finance charge for the month of October is $4.27.
To find the new balance on November 1, we need to subtract the payment from the previous balance and add the finance charge:
New balance = Previous balance - Payment + Finance charge
New balance = $238.30 - $185.00 + $4.27 = $57.57
Therefore, the new balance on November 1 is $57.57.