the billing cycle goes from june 1 to june 30. the previous months balance is $563.80. the transactions are…
the billing cycle goes from june 1 to june 30. the previous months balance is $563.80. the transactions are in the table below.\nstarting balance and transactions\n| date | activity | amount |\n| june 1 | starting balance | $563.80 |\n| june 2 | gasoline | $47.50 |\n| june 2 | groceries | $63.42 |\n| june 15 | payment | -$250.00 |\n| june 27 | pharmacy | $31.21 |\nfind the average daily balance for this credit card. round to the nearest cent.
Answer
Explanation:
Step1: Calculate balance for each period
From June 1 - June 1: Balance = $563.80, Days = 1, Product = $563.80×1 = $563.80 From June 2 - June 14: Balance = $563.80 + $47.50+ $63.42=$674.72, Days = 13, Product = $674.72×13 = $8771.36 From June 15 - June 26: Balance = $674.72- $250.00 = $424.72, Days = 12, Product = $424.72×12=$5096.64 From June 27 - June 30: Balance = $424.72 + $31.21=$455.93, Days = 4, Product = $455.93×4 = $1823.72
Step2: Sum up products
Total product = $563.80 + $8771.36+ $5096.64 + $1823.72=$16255.52
Step3: Calculate average daily balance
Average daily balance=$\frac{16255.52}{30}\approx$541.85
Answer:
$541.85