Calculate the average daily balance, finance charge, and new balance using the average daily balance method. The account balance on January 1st is $244.53. On January 6th a payment of $150.00 is made. Monthly rate = 1.5% Date Payments Purchases Balance Number of Days Product/Sum 1/1 - 1/5 $244.53 5 1,222.65 1/6 $150.00 $94.53 1 a0 1/7 - 1/31 $94.53 25 2,363.25 Total 31 a1 The average daily balance = a2 : 31 = $ a3. Finance charge = monthly rate * average daily balance = $ a4. New balance = previous balance - payment/credits + finance charge + new purchases = $ a5.

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Brady Shannon

Mathematics

8 August, 13:05

Calculate the average daily balance, finance charge, and new balance using the average daily balance method. The account balance on January 1st is $244.53. On January 6th a payment of $150.00 is made. Monthly rate = 1.5% Date Payments Purchases Balance Number of Days Product/Sum 1/1 - 1/5 $244.53 5 1,222.65 1/6 $150.00 $94.53 1 a0 1/7 - 1/31 $94.53 25 2,363.25 Total 31 a1 The average daily balance = a2 : 31 = $ a3. Finance charge = monthly rate * average daily balance = $ a4. New balance = previous balance - payment/credits + finance charge + new purchases = $ a5.

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Luciana Vang · Answer 1

Unpaid balance is : $149.99-$50 = $99.99 New balance = 149.99+2.62-50 = $102.61 Finance charge = 99.99 - 0.21/12 = $1.75 New balance = 99.99+1.75 = $101.74 Average daily balance method Average daily balance = 3399.70/30 = $113.32 Finance charge = $ 0.21/12Ă-113.32 = $1.98 New balance = $149.99-50+1.98 = $101.97