Question

A credit card company uses your average daily balance to compute your finance charge. You charge $100 on May 2 and $200 on May 20. What is your average daily balance?

Answer 1

Answer:

$5.56

Step-by-step explanation:

On may 2, charge = $100

On may 20, charge = $200

To get the average daily balance, we will use the concept of calculating slope;

let d be day of the month and c be the amount charged

when d1 = 2, c1 = 100

when d2 = 20, c2 = 200

average daily balance = c2-c1/d2-d1

average daily balance = 200-100/20-2

average daily balance = 100/18

average daily balance ≈ 5.56

Hence your average daily balance is approximately $5.56