Assume that in a 31-day month you begin with a $60 balance due on your credit card, charge an item for $125 on the 15th and an item for $100 on the 20th of the month. What is your average daily balance on your credit card for this month?
a. $75.48 b. $160.00 c. $172.83 d. $167.26
2007-12-09 17:05:11 · 2 answers · asked by Chris 1 in Science & Mathematics ➔ Mathematics
14 days, $60
5 days, $185
12 days, $285
[14(60) + 5(185) + 12(285)] / 31 = 5185/31 = $167.26
this is a weighted average, just like you use when computing a GPA.
2007-12-09 17:18:08 · answer #1 · answered by Philo 7 · 0⤊ 0⤋
Answer is $ 160.00:
60. x 15 days = 900
60 + 125=185 x 5 days = 925
185 + 100 = 285 x 11 days = 3135
900 + 925 + 3135 = 4960
4960 divided by 31 = (b,) $ 160.00
This is based on the assumption that the previous balance is going through the 15th day and the new balance of 185.00 beginning on the 16th and going through the 20th. The final combined daily balance beginning on the 21st day and going through the 31st.
Otherwise the total will come out to be (d.) $ 167.26, like Philo (above) computed.
2007-12-10 01:38:12 · answer #2 · answered by papaw 7 · 0⤊ 0⤋