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.

The balance at the end of June was $1,910.27, and the interest to be paid on July 1 is $28.20. Find the balance due on July 1. Round to the nearest cent as needed.

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.


The balance at the end of June was $1,910.27, and the interest to be paid on July 1 is $28.20. Find the balance due on July 1. Round to the nearest cent as needed.

anonymous · Answer

attachment

tkhunny · Answer

What did you get?  Let's see your work.

anonymous · Answer

I'm confused as to what I am supposed to do. Do I add up all the days? But they give use the end balance so is that even necessary?

tkhunny · Answer

Ending balance is a commonly used INCORRECT value.  You need the Average Daily Balance.  Add them up!

anonymous · Answer

Day 1-5 2653.49
Day 6-7 1353.49
Day 8     1319.11
Day 9-16 1180.95
Day 17-26  1011.38
27-30      796.71

anonymous · Answer

@tkhunny

anonymous · Answer

I got 1167.403 
@satellite73 can you help me?