A credit card calculates interest using the average daily balance method. The card charges 18.2% annual interest rate on the average daily balance. The following transactions occurred during the June 1 – June 30 billing period.

Question

anonymous · Answer

attachment

anonymous · Answer

@Hero  Can you help me please ?

anonymous · Answer

http://credit.about.com/od/creditcardbasics/qt/avgdailybalance.htm

hero · Answer

Something is weird about it. Seems like the 18.2% is expected to be calculated at some point according to the problem, but according to what @timo86m posted, it isn't calculated with the average daily balance.

hero · Answer

I've looked at several resources, and according to them, the 18.2% is not calculated with the daily average balance. So this problem is much easier now. You just need to find what the balance is on each day then add them up and divide by the number of days.

anonymous · Answer

Yeah that's what i did  It's easier than it looks actually  Just get the number of days  and add up the amounts   than add the numbers than devide the amount of number by  the number of days

hero · Answer

I'm happy you were able to figure it out. What course are you taking?

anonymous · Answer

It's Math 142 it's an online class that's why i'm having a hard time on it ..

anonymous · Answer

can someone explain this again to me?