On the December 8 billing date, Hakeem had a balance due of $532.70 on his credit card. The transactions during the following month were: December 10 Charge : football tickets $ \$ 151.02 $
December 12 Payment $ \$ 107.36 $
January $ 3 \quad $ Charge: restaurant meal $ \$ 51.36 $ The interest rate on the card is 1.4% per month. Using the average daily balance method, find the
Balance due on January 8 (December has 31 days).

Question

Quizplus · Accepted Answer

The average daily balance is calculated by adding the daily balances for the month and dividing by the number of days in the month. The daily balance is calculated by taking the previous day's balance and adding any charges or subtracting any payments made that day.On December 8, the balance due was $532.70. On December 10, a charge of $151.02 was made, so the balance became $683.72. On December 12, a payment of $107.36 was made, so the balance became $576.36. On January 3, a charge of $51.36 was made, so the balance became $627.72.The average daily balance for the month is ($532.70 + $683.72 + $576.36 + $627.72) / 31 = $605.13.The interest charged for the month is $605.13 * 1.4% = $8.47.The balance due on January 8 is $627.72 + $8.47 = $635.96.

On the December 8 Billing Date, Hakeem Had a Balance $151.02 \$ 151.02 $151.02

On the December 8 Billing Date, Hakeem Had a Balance $\$ 151.02$