Ask Question
23 July, 18:33

Given the following:

29 day billing cycle

4/17 Billing date previous balance $1,100

4/27 Payment 700

4/29 Charge 300

5/7 Payment 60

The average daily balance is:

$910.34

$755.17

$810.43

$755.71

None of these

+1
Answers (1)
  1. 23 July, 19:17
    0
    29 day billing cycle

    4/17 Billing date previous balance $1,100

    4/27 Payment 700

    4/29 Charge 300

    5/7 Payment 60

    Day action balance # of days with that balance

    4/17 1,100 from 4/17 to 4/26 = 10 days

    4/27 payment 700 400 from 4/26 to 4/28 = 2 days

    4/29 charge 300 100 from 4/29 to 4/7 = 8 days

    5/7 charge 60 from 5/7 to 5/16 = 9 days

    5/16 none - -

    Weighted average: [1,100*10 + 400*2 + 100*8 + 60*9] / 29 = 13140 / 29 = 435.10

    Answer: 435.10
Know the Answer?