The average daily balance after 20 days is; $1750
<h3>Average Balance</h3>
The initial balance after grace period is; $25,000
Afterwards, A payment of $5,000 each is made on the 10th and 20th day.
Hence, the total balance after 20 days is;
- = $25,000 + $5000 + $5000
The average daily balance is therefore the quotient of $35,000 and 20 days
- The average daily balance = $35,000/20
- Average daily balance = $1750
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