Question

What is the average billing daily balance and finance charge (APR 15%) for the revolving credit account (assume a 30 day billing cycle)?

Billing            Previous         Payment             Payment               New Charge       New Charge

Date               Balance          Date                   Amount               Date                   Amount

4/15                $335.50          4/20                    $33.55

                                                                                                     4/25                    $12.50

                                                                                                     4/26                    $108

Ave daily balance:

Finance Charge:

Answer 1

Calculation of the average billing daily balance and finance charge (APR 15%) for the revolving credit account
Date		Number of days	Daily Balance	Calculated Value
16-Apr	19-Apr	4	$355.50	$1,422.00
20-Apr	24-Apr	5	$321.95	$1,609.75
25-Apr	25-Apr	1	$334.45	$334.45
26-Apr	15-May	20	$442.45	$8,849.00
Total		30		$12,215.20
/ No.of days in billing cycle				30 days
Average Daily balance				$407.17
Finance charge [Average daily balance x 15% x 30 days / 360 days]				$5.09