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QuestionFind the average daily balance for a credit card with balances of \$2,300 for 10 days, \$3,910 for 9 days, and \$1,820 for 12 days.

Studdy Solution

STEP 1

Assumptions1. The initial balance is ,300for10days.Thebalanceafterthepurchaseis,300 for10 days. The balance after the purchase is 3,910 for9 days3. The balance after the payment is $1,820 for the remaining12 days4. The month is considered to have31 days

STEP 2

First, we need to calculate the total balance for each period. This can be done by multiplying the balance by the number of days.
Total balance for each period=BalancetimesNumber of daysTotal\, balance\, for\, each\, period = Balance \\times Number\, of\, days

STEP 3

Now, plug in the given values for the balance and number of days for each period to calculate the total balance for each period.
Total balance for first period=$2,300times10Total\, balance\, for\, first\, period = \$2,300 \\times10Total balance for second period=$3,910times9Total\, balance\, for\, second\, period = \$3,910 \\times9Total balance for third period=$1,820times12Total\, balance\, for\, third\, period = \$1,820 \\times12

STEP 4

Calculate the total balance for each period.
Total balance for first period=$2,300times10=$23,000Total\, balance\, for\, first\, period = \$2,300 \\times10 = \$23,000Total balance for second period=$3,910times9=$35,190Total\, balance\, for\, second\, period = \$3,910 \\times9 = \$35,190Total balance for third period=$1,820times12=$21,840Total\, balance\, for\, third\, period = \$1,820 \\times12 = \$21,840

STEP 5

Now that we have the total balance for each period, we can find the total balance for the entire month. This can be done by adding up the total balance for each period.
Total balance for the month=Total balance for first period+Total balance for second period+Total balance for third periodTotal\, balance\, for\, the\, month = Total\, balance\, for\, first\, period + Total\, balance\, for\, second\, period + Total\, balance\, for\, third\, period

STEP 6

Plug in the values for the total balance for each period to calculate the total balance for the month.
Total balance for the month=$23,000+$35,190+$21,840Total\, balance\, for\, the\, month = \$23,000 + \$35,190 + \$21,840

STEP 7

Calculate the total balance for the month.
Total balance for the month=$23,000+$35,190+$21,840=$80,030Total\, balance\, for\, the\, month = \$23,000 + \$35,190 + \$21,840 = \$80,030

STEP 8

Now that we have the total balance for the month, we can calculate the average daily balance. This can be done by dividing the total balance for the month by the number of days in the month.
Average daily balance=Total balance for the month/Number of days in the monthAverage\, daily\, balance = Total\, balance\, for\, the\, month / Number\, of\, days\, in\, the\, month

STEP 9

Plug in the values for the total balance for the month and the number of days in the month to calculate the average daily balance.
Average daily balance=$80,030/31Average\, daily\, balance = \$80,030 /31

STEP 10

Calculate the average daily balance.
Average daily balance=$80,030/31=$2,581.94Average\, daily\, balance = \$80,030 /31 = \$2,581.94The average daily balance is $2,581.94.

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