Question

1. for the month of december the sum of your daily balances was $429.52 and you had no new purchases. you had an unpaid balance of $215.95. the periodic rate is 5.5%. what is your average daily balance and finance charge.

Explanation:

Step1: Calculate average daily balance

December has 31 days. Divide total daily balances by days:
$\text{Average Daily Balance} = \frac{429.52}{31}$

Step2: Compute the finance charge

Use the unpaid balance and periodic rate:
$\text{Finance Charge} = 215.95 \times 0.055$

Answer:

Average daily balance: $\$13.86$
Finance charge: $\$11.88$