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Calculate the average daily balance and finance charge. (Round your answers to the nearest cent.) 30-day...

Calculate the average daily balance and finance charge. (Round your answers to the nearest cent.)

30-day billing cycle
9/16 Billing date Previous balance $ 3,300
9/19 Payment $ 73 cr.
9/30 Charge: Home Depot 2,150
10/3 Payment 73 cr.
10/7 Cash advance 83



Finance charge is 1.25% on average daily balance.

What is the finance Charge and Average Daily Balance?

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Answer #1

Average Daily Balance is the sum of closing balances of all the days in a month (i.e. Day 1+Day 2+.....) divided by the total number of days in a month.

Finance charge means the fee levy on the amount borrowed and simply called the interest rate. it can be calculated  on the average monthly balance maintained in the account.

find below the calculations :

/16 9/18 /9- 3.200 -9900 We 39, 103 33731 1 9/29 7/20 10/2 37,163-2,50 3415213 104 59 34953193 $y S 1/2 10/6 10/3- tmt -35,02

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