a credit card account has $650 balance on May 5. A purchase of $321 was made on May 14 and a payment was made on May 22 of $500. The next billing date is June 5.

A. What is the average daily balance?

B. If the monthly interest is 1.5% what is the finance charge

days of 650=14-5

days of 971=22-14=7
days of 471=5+6=11

average daily balance= (650*9/31)+971*7/31 + 471*11/31=you do it.

To calculate the average daily balance and the finance charge, we need to break down the credit card account's transactions into daily balances and determine the number of days for each balance.

Here's how you can calculate the average daily balance:

1. Calculate the daily balance from May 5 to May 14:
Starting balance = $650
Ending balance = $650
Number of days = 14 - 5 + 1 = 10 days
Daily balance = (Starting balance + Ending balance) / 2 = ($650 + $650) / 2 = $650

2. Calculate the daily balance from May 15 to May 21 (after the purchase):
Starting balance = $650
Ending balance = $650 + $321 = $971
Number of days = 21 - 15 + 1 = 7 days
Daily balance = (Starting balance + Ending balance) / 2 = ($650 + $971) / 2 = $810.50

3. Calculate the daily balance from May 22 to June 4 (after the payment):
Starting balance = $971 - $500 = $471
Ending balance = $471
Number of days = 4 + 31 - 22 + 1 = 14 days (assuming June has 31 days)
Daily balance = (Starting balance + Ending balance) / 2 = ($471 + $471) / 2 = $471

4. Calculate the average daily balance:
Total number of days = 10 + 7 + 14 = 31 days (assuming June has 31 days)
Average daily balance = (Daily balance from May 5-14 * 10 days + Daily balance from May 15-21 * 7 days + Daily balance from May 22-June 4 * 14 days) / Total number of days
Average daily balance = ($650 * 10 + $810.50 * 7 + $471 * 14) / 31
Average daily balance = $21,326.50 / 31
Average daily balance ≈ $689.24

Now, let's calculate the finance charge:

5. Calculate the monthly interest charge:
Monthly interest rate = 1.5% / 100 = 0.015
Monthly interest charge = Average daily balance * Monthly interest rate * Number of days in the billing cycle
Monthly interest charge = $689.24 * 0.015 * 31
Monthly interest charge ≈ $317.57

Therefore, the average daily balance is approximately $689.24, and the finance charge is approximately $317.57.