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ElenaW [278]
3 years ago
13

At the end of October, Jane's credit card balance was $1,200. On November 16, she made $500 of purchases. On November 26, she pa

id off $800 of balance. What was her average end of day balance during the month of November?
Mathematics
1 answer:
Elodia [21]3 years ago
3 0

Answer:

Average day end balance using weighted average = $1,316.667

Average day end balance using simple average = $1,050

Step-by-step explanation:

Provided opening balance = $1,200

During the month addition in such balance = $500

New balance as on 16 November = $1,200 + $500 = $1,700

Further by the end of month of November balance after payment = $1,700 - $800

= $900

Thus, opening balance = $1,200

Closing = $900

Simple average = \frac{1,200 + 9,00}{2} = 1,050

Day end balance = $1,050

For this weighted average can be done

First 15 days balance = $1,200 as no transaction was done.

From 16  to 25 November balance increased by $500 = $1,700 for 10 days

Remaining days = 5 days = $1,700 - $800 paid = $900

Using weighted average we have

\frac{(1,200 \times 15) + (1,700 \times 10) + (900 \times 5)}{30} = \frac{39,500}{30} = 1,316.667

Day end balance = $1,316.667

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