Question

8.8.3 Skill Builder Question Help The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is 1.4% of the average daily balance. Calculate parts a-d using the statement in the popup. Click the icon to view the credit card statement. a. Find the average daily balance for the billing period. Round to the nearest cent. The average daily balance for the billing period is $ . (Round to the nearest cent as needed.) * Credit Card Statement Transaction Amount Transaction Description Previous balance, $2654.14 June 1 Billing date June 6 Payment June 8 Charge: Gas June 9 Charge: Groceries June 17 Charge: Gas Charge: Groceries June 27 Charge: Clothing June 30 End of billing period Payment Due Date: July 9 $1000.00 credit $34.57 $136.96 $41.34 $127.29 $215.67 Print Done Enter your answer in the answer box and then click Check Answer.

Answer 1

Hi, Below is your answer

Date	Particulars	Opening Amount	Debit/ (Credit)	Closing Amount	No of Days	Accumulated Balance
1-Jun	Opening Balance	$2,654.14		$2,654.14	-	-
6-Jun	Payment	$2,654.14	($1,000.00)	$1,654.14	6	$9,924.84
8-Jun	Gas-Charges	$1,654.14	$34.57	$1,688.71	2	$3,377.42
9-Jun	Groceries-Charges	$1,688.71	$136.96	$1,825.67	1	$1,825.67
14-Jun	Gas-Charges	$1,825.67	$41.34	$1,867.01
14-Jun	Groceries-Charges	$1,867.01	$127.29	$1,994.30	5	$9,971.50
27-Jun	Clothing-Charges	$1,994.30	$215.67	$2,209.97	13	$28,729.61
30-Jun	Closing Balance	$2,209.97		$2,209.97	3	$6,629.91
					30.00	$60,458.95
Average Balance (Total Accumulated / Total No of Days)						$2,015.30

The accumulated balance is the number of days x the closing balance, the average balance would be the total of accumulated balance divided by total number of days.