Question

Haven’t done this type of math before could use some help:)

Answer 1

Third row:

The balance stays the same as the previous row ($337.52).

We have 12 days between 9/7 and 9/18, so we can calculate the product/sum as:

`S=12\cdot337.52=4050.24`

NOTE: the product/sum will be used to calculate the average balance for the month.

Fifth row:

The balance stays the same as the previous row ($399.78).

We have 11 days between 9/20 and 9/30.

Then, the product/sum is:

`S=399.78\cdot11=4397.58`

Total:

The total product/sum is:

`S_{\text{Total}}=1937.60+337.52+4050.24+399.78+4397.58=11122.72`

Average daily balance:

We can take the total product/sum and divide by the total amount of days.

`\text{average daily balance}=(11122.72)/(30)=370.76`

Finance charge:

`\text{ finance charge}=(1.25)/(100)\cdot370.76=4.63`

New balance:

`\begin{gathered} \text{New balance = previous balance - payment/credits + finance charge + new purchases} \\ \text{New balance = }387.52-50+4.63+62.26=404.41 \end{gathered}`

The new balance is $404.41.