Question

A credit card account had a \$236 balance on March 5. A purchase of \$180 was...

A credit card account had a \$236 balance on March 5. A purchase of \$180 was made on March 12, and a payment of \$175 was made on March 28. Find the average daily balance if the billing date is April 5. (Round your answer to the nearest cent.)

Homework Answers

Answer #1

COMPUTATION OF AVERAGE DAILY BALANCE

Average Daily Balance = Sum of the total amount owed each day of the month / Number of days in the billing period

 Date Payments or Purchases Balance each day Number of days until balance changes Unpaid balance times number of days March 5 - March 11 \$236 7 \$1,652 March 12 - March 27 \$180 \$416 16 \$6,656 March 28 - April 4 (\$175) \$241 8 \$1,928 TOTAL 31 \$10,236

Average Daily Balance = \$10,236 / 31

= \$330.2

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