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\ndate activity amount\njune 1 starting balance $563.80\njune 2 gasoline $47.50\njune 2 groceries $63.42\njune 15 payment -$250.00\njune 27 pharmacy $31.21\nfind the average daily balance for this credit card. round to the nearest cent.

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\ndate activity amount\njune 1 starting balance $563.80\njune 2 gasoline $47.50\njune 2 groceries $63.42\njune 15 payment -$250.00\njune 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
  • From June 2 - June 14: Balance = $563.80 + 47.50+63.42=674.72$, Days = 13
  • From June 15 - June 26: Balance = $674.72- 250=424.72$, Days = 12
  • From June 27 - June 30: Balance = $424.72 + 31.21=455.93$, Days = 4

Step2: Calculate sum of (balance * days)

[ \begin{align*} &(563.80\times1)+(674.72\times13)+(424.72\times12)+(455.93\times4)\ =&563.80 + 8771.36+5096.64 + 1823.72\ =&(563.80+8771.36)+(5096.64 + 1823.72)\ =&9335.16+6920.36\ =&16255.52 \end{align*} ]

Step3: Calculate average daily balance

Average daily balance = $\frac{16255.52}{30}\approx541.85$

Answer:

$541.85$