Justin had a beginning balance of $100 on his credit card as of May 1 last month.On May 11 he charged a meal for $44.On May 21 he made a payment of $48.What was his average daily balance for the month?

Question

Quizplus · Accepted Answer

To find the average daily balance, we need to add up the daily balances for each day of the month and divide by the number of days in the month. To calculate the daily balance, we need to take into account the beginning balance, any charges, and any payments for each day.

Calculating the daily balances:
May 1-10: Balance = $100
May 11-20: Balance = $100 + $44 = $144
May 21-31: Balance = $144 - $48 = $96

Now we add up the daily balances:
May 1-10: ($100 x 10) = $1000
May 11-20: ($144 x 10) = $1440
May 21-31: ($96 x 11) = $1056

Total = $3496

Dividing by the number of days in the month (31), we get:

Average daily balance = $3496 / 31 = $112.65

Rounding this to the nearest dollar, we get:

Average daily balance = $113

Therefore, the best choice is D.

Justin Had a Beginning Balance of $100 on His Credit