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.

Answer 1

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Answer:
`\textsf{\$1583.9 per day}`

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Given:
`\textsf{The table with the information}`

Find:
`\textsf{The average daily balance of Elliott's account for the month of June}`

Solution: In order to get the average daily balance, we need to use a formula where we have a weighted balance for each day. For example, out of the 30 days in June, 9 of the days there was $1223 in the account, for 5 days there was $1223 + $615 in the account, for 7 days there was $1223 + $615 - $63 in the account, and for the last 9 days there was $1223 + $615 - $63 - $120 in the account. This all happened over 30 days and to translate this to an equation it will look something like the following.

Convert to equation and simplify

• 
  `((1223\ *\ 9)\ +\ (1223\ +\ 615)\ *\ 5\ +\ (1223\ +\ 615\ -\ 63)\ *\ 7\ +\ (1223\ +\ 615\ -\ 63\ -\ 120)\ *\ 9)/(30\ days)`

• 
  `((11007)\ +\ (9190)\ +\ (12425)\ +\ (14895))/(30\ days)`

• 
  `((47517))/(30\ days)`

• 
  `\textsf{1583.9 per day}`

Therefore, the final answer would be that the average daily balance of Elliott's account for the month of June would be $1583.9 per day.