Question

AVERAGE DAILY BALANCE. A credit card
account has a Php 5,000 balance on April
1. A purchase of Php 999 was made on
April 5 and a payment of Php 2,000 was
made on April 18. Find the average daily
balance if the new billing date is May 1.
Note: Your answer must only contain
numbers. Round off your answer to two
decimal places.​

Answer 1

Given : A credit card  account has a Php 5,000 balance on April  1

A purchase of Php 999 was made on  April 5

a payment of Php 2,000 was  made on April 18.

To Find : the average daily  balance if the new billing date is May 1.

Solution:

A credit card  account has a Php 5,000 balance on April  1

Balance from 1st Apr to 4th April = 5000 x 4 = 20000

A purchase of Php 999 was made on  April 5 Hence Balance on 5th

= 5000 + 999

= 5999

Balance from 5th April to April 17  =  13 x 5999  =  77,987

Payment of 2000 on 18th

Balance on 18th = 5999 - 2000 = 3999

Balance from 18th to 30  = 13  * 3999 = 51,987

Total Balance in 30 Days = 20000 + 77,987 + 51,987

= 1,49,974

average daily  balance    =  1,49,974 / 30

= 4,999.13

Learn More:

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