manuel has a revolving credit account that uses the average daily balance to calculate finance charges. During april 2007( amonth with 30 days)
he had an unpaid balance of $445.12 for 18 days and an unpaid balance of $221.38 for 12 days. what would his average daily balance for april 2007
is it $335.62
To calculate the average daily balance for April 2007, we need to determine the sum of the balances for each day and then divide it by the total number of days in the month.
For Manuel's revolving credit account, we have:
Unpaid balance for 18 days = $445.12
Unpaid balance for 12 days = $221.38
To find the average daily balance, we will calculate the total balance for all the days in April 2007 and divide it by 30 (the total number of days in April).
Total balance = (18 days * $445.12) + (12 days * $221.38)
Total balance = $8012.16 + $2656.56
Total balance = $10668.72
Average daily balance = Total balance / Number of days
Average daily balance = $10668.72 / 30
Average daily balance ≈ $355.62
So, the correct answer is that Manuel's average daily balance for April 2007 is approximately $355.62, not $335.62.