Question

I need help I feel like no one is helping me and I looked it up too

The balance on Jim's credit card on April 17, the billing date, was $78.30. For the period ending May 16, he made the following transactions.
April 20 payment $50.00
May 1 charge for gas: $29.20

a. find the average daily balance for the billing period
b. find the finance charge that is due may 17
c. find the balance that is due may 17

Answer 1

Not sure.

Answer 2

anyone good at this?

Answer 3

no idea :(

Answer 4

Apr 17: Balance = $78.30
Apr 18: Balance = $78.30
Apr 19: Balance = $78.30



Apr 20: Balance = $28.30 ... payment made (78.30-50=28.30)
Apr 21: Balance = $28.30
Apr 22: Balance = $28.30
Apr 23: Balance = $28.30
Apr 24: Balance = $28.30
Apr 25: Balance = $28.30
Apr 26: Balance = $28.30
Apr 27: Balance = $28.30
Apr 28: Balance = $28.30
Apr 29: Balance = $28.30
Apr 30: Balance = $28.30



May 1: Balance = $57.50 ... charge (28.30+29.20 = 57.5)
May 2: Balance = $57.50
May 3: Balance = $57.50
May 4: Balance = $57.50
May 5: Balance = $57.50
May 6: Balance = $57.50
May 7: Balance = $57.50
May 8: Balance = $57.50
May 9: Balance = $57.50
May 10: Balance = $57.50
May 11: Balance = $57.50
May 12: Balance = $57.50
May 13: Balance = $57.50
May 14: Balance = $57.50
May 15: Balance = $57.50
May 16: Balance = $57.50



There are 3 days (apr 17 through apr 19) where the balance is 78.30

There are 11 days (apr 20 though apr 30) where the balance is 28.30

There are 16 days (may 1 through may 16) where the balance is $57.50


Let me know if this helps with calculating the average daily balance

Answer 5

it helps that way what is the daily average balance for the billing period? how do I find that

Answer 6

What does the word "average" mean to you?

Answer 7

adding

Answer 8

Nothing but adding?

Answer 9

multiply the number of days with the corresponding balance


for apr 17 through apr 20
3*78.30 = 234.9


for apr 20 through apr 30
11*28.30 = 311.3

for may 1 through may 16
16*57.50 = 920


Now you'll add up the products (234.9 and 311.3 and 920)
Divide that sum by the total number of days from apr 17 to may 16

Answer 10

you could take the slower way and actually add all of the 30 values up and divide by 30, but the weighted mean approach is much faster

Answer 11

Recall that the "average" of a set of numbers is the sum of the numbers

divided by the number of numbers.

Answer 12

$48.87

Answer 13

correct, @pphalke

Answer 14

that's the average daily balance for that 30 day billing cycle

Answer 15

then I got $0.21 for the next answer I don't know how I did that

Answer 16

to find the finance charge (interest), use this formula

i = P*r*t

i = interest = finance charge
P = balance (in this case, average daily balance)
r = interest rate
t = time in years (1 month = 1/12 years)

Answer 17

i = P*r*t
i = 48.87*r*(1/12)

I don't know what the interest rate is so I can't continue