What would be the formula for "Find the average daily balance, including new purchases."? (there is a picture for this question and I'd include it but, I don't know how yet)

Question

jim_thompson5910 · Answer

You can attach files by clicking "attach file" under the text box

jim_thompson5910 · Answer

Or you can host the pic on a site like imgur or something, then give the link

anonymous · Answer

(took me a second to see what you were talking about, I literally just joined the site) thanks!

anonymous · Answer

I'm just not sure which numbers to add and which ones to subtract...

jim_thompson5910 · Answer

ok so what the average daily balance does is find the balance for the whole month, as if it were a snapshot. The balance changes quite a bit, but the credit card company only charges interest on one figure: the average daily balance

anonymous · Answer

ok

jim_thompson5910 · Answer

what we do is multiply the number of days with the balance for that time period

eg: 
675*5 = 3,375
1085*1 = 1085
1085*9 = 9,765
etc etc

jim_thompson5910 · Answer

then you add all of those products up and then divide by 31 (the total number of days in the month)

anonymous · Answer

ok, thank you!!!! :)

jim_thompson5910 · Answer

tell me what you get

anonymous · Answer

$541.45?

jim_thompson5910 · Answer

I'm getting the same

anonymous · Answer

thank you thank you thank you!! :D

jim_thompson5910 · Answer

so this is the balance that the CC company will use to figure out the finance (ie interest) charge

jim_thompson5910 · Answer

you're welcome