Average daily balance

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Cdionne6271

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Jun 23, 2021
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Your master card calculates interest using average daily balance method and the monthly interest rate is 2.1%. The itemized billing for the month of August is this:

Unpaid balance 8/1 $300
Payment received 8/9 $100
Purchase 8/10 $4500
Purchase 8/18 $350
Purchase 8/25 $350
Last day of billing 8/31

What is average daily balance?
Interest?
Ending balance for the month?
Min. Payment due is 1/36 of ending balance?
 
Cdionne6271 said:
Your master card calculates interest using average daily balance method and the monthly interest rate is 2.1%. The itemized billing for the month of August is this:

Unpaid balance 8/1 $300
Payment received 8/9 $100
Purchase 8/10 $4500
Purchase 8/18 $350
Purchase 8/25 $350
Last day of billing 8/31

What is average daily balance?
Interest?
Ending balance for the month?
Min. Payment due is 1/36 of ending balance?
Click to expand...
Please share your work/thoughts regarding YOUR assignment.
 
Cdionne6271 said:
?????
Click to expand...
Since you cannot even start the problem - and we don't know how much you know - we will start with definitions.

What is the definition of - average daily balance method?

What is the definition of - the monthly interest rate?
 
Can you add up what you owed for each day of the month? Can you calculate how many days there are in the moth you are talking about? How about dividing those two numbers?
 
Jomo said:
Can you add up what you owed for each day of the month? Can you calculate how many days there are in the moth you are talking about? How about dividing those two numbers?
Click to expand...
Hey @Jomo. It’s tough to count the days in a moth: they are so ticklish.
 
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