At the end of your credit card billing cycle (March 31), you have a balance of $2,000. On April 10, you made a $1,000 payment on the account, and on April 15, you used your card to make a purchase of $500. What is the average daily balance that will be used to calculate your finance changes for the month (rounded to the nearest dollar)?

Question

Quizplus · Accepted Answer

The average daily balance is calculated by taking the sum of the daily balances and dividing by the number of days in the billing cycle. From April 1-9, the balance is $2,000. From April 10-14, the balance is $1,000. From April 15-30, the balance is $1,500. Calculating: (9 days * $2,000 + 5 days * $1,000 + 16 days * $1,500) / 30 days = $1,581.

At the End of Your Credit Card Billing Cycle (March