$225.80 8 9 10 11 12 13 14 $225.80 $225.80 $225.80 + $300.15 $300.15 $300.15 $300.15 $74.35 = 300.15 15 16 17 18 19 20 21 $300.15 $300.15 $300.15 $300.15 + $423.65 $423.65 $423.65 $123.50 = $423.65 22 23 24 25 26 27 28 $423.65 $423.65 $423.65 $423.65 $423.65 $423.65 $423.65 + $142.50 = $566.15 29 30 31 August 1 $566.15 $566.15 $566.15 New cycle begins Another way to find the Average Daily Balance without using a calendar is to (i) Find the number of days that the balance did not change between each transaction. Count the first day in the period, but not the last day. (ii) Multiply the balance due by the number of days the balance did not change. (iii) Find the sum of the products. (iv) Divide sum by 31. Date Balance Due Number of Days (Balance)(Days) Balance Stayed Static July 1 $375.80 4 ($375.80)(4) = $1503.20 July 5 $225.80 5 ($225.80)(5) = $1129.00 July 10 $300.15 8 ($300.15)(8) = $2401.20 July 18 $423.65 10 ($423.65)(10)= $4236.50 July 28 $566.15 4 ($566.15)(4) = $2264.60
$225.80 8 $225.80 9 $225.80 10 $225.80 + $74.35 = 300.15 11 $300.15 12 $300.15 13 $300.15 14 $300.15 15 $300.15 16 $300.15 17 $300.15 18 $300.15 + $123.50 = $423.65 19 $423.65 20 $423.65 21 $423.65 22 $423.65 23 $423.65 24 $423.65 25 $423.65 26 $423.65 27 $423.65 28 $423.65 + $142.50 = $566.15 29 $566.15 30 $566.15 31 $566.15 August 1 New cycle begins Another way to find the Average Daily Balance without using a calendar is to (i) Find the number of days that the balance did not change between each transaction. Count the first day in the period, but not the last day. (ii) Multiply the balance due by the number of days the balance did not change. (iii) Find the sum of the products. (iv) Divide sum by 31. Date Balance Due Number of Days (Balance)(Days) Balance Stayed Static July 1 $375.80 4 ($375.80)(4) = $1503.20 July 5 $225.80 5 ($225.80)(5) = $1129.00 July 10 $300.15 8 ($300.15)(8) = $2401.20 July 18 $423.65 10 ($423.65)(10)= $4236.50 July 28 $566.15 4 ($566.15)(4) = $2264.60
Average+Daily+Balance+Assignment.docx