Question

The balance after the grace period is $15,000. A payment of $5,000 is made on the

10th day. A payment of $5,000 is made on the 20th day. What is the average daily
balance?

Answer 1

the average daily balance is 500

Explanation:

If a payment of 5,000 is made on the tenth day you can divide 5,000 by ten to get the amount payed everyday before hand. Once you do that you will end up with the answer of 500. Therefore the average daily balance is 500