Question

The activity on Harvey’s credit card account for one billing period is shown below. The billing period is Sep 28 through Oct 27, the previous balance was $4050.06, and the annual interest rate is 18 S Z %. Find the average daily balance, the finance charge, and the new balance. Sep 30 deposit $900 average daily balance:

Answer 1

Calculation of the average daily balance , finance charge and new balance
Date		Number of days	Daily Balance	Calculated Value
28-Sep	29-Sep	2	$4,050.06	$8,100.12
30-Sep	27-Oct	28	$3,150.06	$88,201.68
Total		30		$96,301.80
/ No.of days in billing cycle				30 days
Average Daily balance				$3,210.06
Finance charge [Average daily balance x 18% x 30 days / 365 days]				$47.49
Average daily balance =		$3,210.06
Finance Charge =		$47.49
Credit card new balance =		$3,197.55