On April 1, the unpaid balance in an account was $174. A payment of $70 was made on April 8. On April 26 a $26 purchase was made. The interest rate per month was 1.75% per month of the average daily balance. Find the new balance at the end of April.

Question

Quizplus · Accepted Answer

The average daily balance is (174 x 8 + 104 x 18) / 26 = 135. The interest is 135 x 0.0175 x 26 / 365 = 2.06. The new balance is 174 + 26 - 70 + 2.06 = 132.18.

On April 1, the Unpaid Balance in an Account Was