Question

The average daily balance is the mean of the balance in an account at the end of each day in a month. The following table gives the dates and amounts of the transactions in Elliott's account in June.

Day of June Transaction type Transaction amount (in dollars)
1
11 Starting balance
1223
12231223
10
1010 Deposit
615
615615
15
1515 Withdrawal
−
63
−63minus, 63
22
2222 Withdrawal
−
120
−120minus, 120
There are
30
3030 days in June.
What is the average daily balance of Elliott's account for the month of June?

Answer 1

the daily balance of Elliott's account for the month of June is $1497.37.

Explanation:

Day 1: 1223

Day 10: 1838 (1223+615)

Day 15: 1775 (1838 - 63)

Day 22: 1655 (1775 - 120)

To find the average daily balance, we add up the balances for each day and divide by the number of days in June: