multiply each amount by the number of days it existed
add up all those products
divide by the total number of days of existence
Just like any weighted average
For example, the avg daily balance for just the first three amounts is
(593.01*31 + 639.96*21 + 389.96*16)/(31+21+16) = 559.73
You have a credit card that charges an interest rate of 20.35% compounded monthly. The table below shows your activity for the month of October.
Date Activity Amount Balance
October 1 Beginning Balance 593.01
October 10 Purchase 46.95 639.96
October 15 Payment −250.00 389.96
October 17 Purchase 89.35 479.31
October 22 Purchase 13.54 492.85
October 28 Purchase 33.89 526.74
October 31 Ending Balance 526.74
What is the average daily balance for this account?
$
What is the finance charge for the month of October?
$
Could someone help me out please
2 answers
Wait could you explain where you got 21?
1 answer