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    Computing Average Daily Balance and Finance Charge

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    Sept 16 bill date. Previous balance is $1,700
    1700 x 3 da = 5,100. I counted Sept 17, 18, 19) not Sept 16
    Sept 19. Balance is 5,100
    Sept 19 Pymt. 57.00. (5,100 - 57.00 = 5,043). New bal 5,043
    (From Sept 19 to Sept 30 I counted 11 days. I did not count Sept 19)
    5,043 x 11 days = 55,473. New balance
    Sept 30. Charge Home Depot. 55,473 + 1350 = 56,823 new balance
    Sept 30 to Oct 3 is 4 days - not counting Sept 30 & per txt I Sept is a 31 day month
    So balance of 56,823 x 4 days = 227,292 New balance
    Oct 3 Pymt. 227,292 - 57.00 = 227,235. New balance
    Balance 227,235 for 4 days = 908,940. Oct 3 to Oct 7, 4 days, not Oct 3
    Oct 3. Cash advance. Of $67. 908,940 + 67 = 909,007. Cumulative daily balances.

    Avg daily balance = 909,007 / 30 day bill cycle = 30,300.23

    Finance charge = 30,300.23 x .0125 = 378.7529 = 378.75
    Both these answers were wrong

    See my steps what am I doing wrong??

    See attached images

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    https://brainmass.com/business/business-math/computing-average-daily-balance-finance-charge-614691

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    Solution Summary

    This solution illustrates how to compute a consumer's average daily balance and finance charge on a revolving account.

    $2.19

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