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Calculate the average daily balance, finance charge, and new balance using the average daily balance method.
Monthly rate = 1.75%
Date
Payments Purchases
Balance
Number of Days Product/Sum
9/1 - 9/5
$387.52
5
$1,937.60
9/6
$50.00
$337.52
1
$337.52
9/7 - 9/18
$
$
9/19
$62.66
$400.18
1
$400.18
9/20 - 9/30
$
$
Total
30
$
The average daily balance =
- 30 = $
Finance charge = monthly rate x average daily balance = $
New balance = previous balance - payment/credits + finance charge + new purchases = $

Calculate The Average Daily Balance Finance Charge And New Balance Using The Average Daily Balance Method Monthly Rate 175 Date Payments Purchases Balance Numbe class=

Sagot :

Solution :

For average daily balance:

Form date 9/1 to date 9/5 :

Balance x number of the days = $ 387.52 x 5 days = $ 1937.6

As on date 9/6 :

($ 387.52 - $ 50.00) x 1 day = $ 337.52

From date 9/7 to date 9/18 :

Balance = $ 337.50

Number of days = 12 days

Therefore, product = 12 days x $ 337.52

                               = $ 4050.24

As on 9/19 :

($ 337.52  + $ 62.66) x 1 day = $ 400.18

From date 9/20 to date 9/30

Balance :$ 400.18

Number of days = 11 days

Therefore, product = 11 days x $ 400.18

                               = $ 4401.98

Average daily balance =  $ 1937.6 +  $ 337.50 + $ 4050.24 + $ 400.18 + $ 4401.98

[tex]$=\frac{11127.5}{30}$[/tex]

= $ 370.91

Finance charge = $ 370.91 x 1.75 %

                          = $ 6.49

New balance = $ 370.91 + $ 6.49

                      = $ 377.4

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