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Find the average daily balance for the credit card with the following transactions. Assume one month between billing dates us
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Answer #1

The next billing date will June 17.

In order to calculate the average daily balance, we shall ascertain the balance on every day, which is as follows,

May 17 - 18 = 459.21

May 19 - 24 = (459.21 - 62.45) = 396.76

May 25 - 27 = (396.76 + 134.76) = 531.52

May 28 - June 2 = (531.52 + 45.65) = 485.87

June 3 - June 17 = 485.87 - 175 = 310.87

Now add the balance every day and divide it with number of days to get average daily balance, that is as follows,

(Day 1 balance + day 2 balance + day 3 balance + ..........) ÷ 31

=(918.42 + 2380.56 + 1594.56 + 3401.09 + 4663.05) ÷ 31

=12957.68 ÷ 31

= 417.99 or 418.

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