Question

A credit card calculates interest using the average daily balance method. The card charges 19.0% annual interest rate on the average daily balance. The following transactions occurred during the June 1 – June 30 billing period.

Transaction description: Transaction Amount
Previous balance $2653.49

June 1 Billing date
June 6 Payment $1300.00 credit
June 8 Charge: gas $34.38
June 9 Charge: groceries $138..16
June 17 Chg: Gas $41.36
$128.21

Answer 1

continued:
June 27 Charge: Clothing $214.67
June 30 End of billing period
Payment due date: July 9

Find the average daily balance for the billing period. Round to the nearest cent.

Answer 2

help!!!

Answer 3

You didn't believe me the 1st time? Seriously, just make a list of the 30 days in June and write down the balance on each day. Add up all those values and divide by 30.

Answer 4

That's not the correct answer. I get $61.89 and when I input that the computer tells me it's incorrect.

Answer 5

It is the correct answer when you don't miss anything. I reproduced it without difficulty. Are you using a pencil? A spreadsheet would help you avoid errors.

It could be a problem with the actual qeustion. Does it want the interest charged? Does it want a new balance? What does it want?

Answer 6

I really have no clue, I transcribed word-for-word what the question asked but that's alright, I appreciate your time anyways!

Answer 7

Hmmm... Really, this sort of problem can be quite tedious. To tell you the truth, credit card companies like to be as complicated as possible so the poor consumer can't follow it. There are at least dozens of variations in practice. This is why we write computer programs to calculate it.

Good luck. Sorry we couldn't do any better for now.