Web Analytics

Given the following:


29 day billing cycle

4/17 Billing date previous balance $1,100

4/27 Payment 700

4/29 Charge 300

5/7 Payment 60


The average daily balance is:

$910.34

$755.17

$810.43

$755.71

None of these

Verified Answer :

29 day billing cycle


4/17 Billing date previous balance $1,100

4/27 Payment 700

4/29 Charge 300

5/7 Payment 60

 Day
action                balance       # of days with that balance

4/17                                     1,100          from 4/17 to 4/26 = 10 days

4/27
payment 700          400
from 4/26 to 4/28 = 2 days 

4/29
charge 300             100            from 4/29 to 4/7 = 8 days

5/7
charge                       60            from 5/7 to 5/16 = 9 days

5/16     none                         -                -

 

Weighted average: [1,10010 + 4002 + 1008 + 609] /
29 = 13140 / 29 = 435.10


Answer: 435.10