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The problem shown in the image involves calculating the average daily balance and finance charge for a credit card account. Here's a transcription of the relevant portion:

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1. A credit card account has a $775 balance on 9/1. A purchase of $49 was made on 9/13, and a payment of $400 was made on 9/21. The billing date is 10/1.

(a) Find the average daily balance.

(b) If the finance rate is 2.17% per month, what is the finance charge?

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Let's start with part (a) to calculate the average daily balance.

### Steps for part (a) - Average Daily Balance:

1. **Period 1 (9/1 to 9/12)**: 
   - Balance: $775
   - Duration: 12 days

2. **Period 2 (9/13 to 9/20)**:
   - Balance: $775 + $49 = $824
   - Duration: 8 days

3. **Period 3 (9/21 to 9/30)**:
   - Balance: $824 - $400 = $424
   - Duration: 10 days

The **average daily balance** is calculated by summing the daily balances for each period and then dividing by the total number of days in the billing cycle (30 days in September).

\[
\text{Average Daily Balance} = \frac{(775 \times 12) + (824 \times 8) + (424 \times 10)}{30}
\]

Now, let's compute this:The average daily balance for the credit card account is approximately **$671.07**.

### Part (b) - Finance Charge

To calculate the finance charge, we use the formula:

\[
\text{Finance Charge} = \text{Average Daily Balance} \times \text{Monthly Finance Rate}
\]

Given that the finance rate is **2.17% per month**, the finance charge will be:

\[
\text{Finance Charge} = 671.07 \times \frac{2.17}{100}
\]

Let's compute the finance charge:The finance charge for the credit card account is approximately **$14.56**.

Would you like further details or have any questions? Here are five related questions to consider:

1. How would the average daily balance change if another purchase was made before the payment?
2. How is the finance charge affected by varying the finance rate?
3. Can you calculate the finance charge for different billing cycles (e.g., 25 days)?
4. What happens to the average daily balance if the payment was delayed?
5. How is the finance charge affected if purchases are made after the payment?

**Tip:** It's always important to track both the date and amount of transactions on your credit card, as they significantly impact your finance charges.

A credit card account has a $775 balance on 9/1. A purchase of $49 was made on 9/13, and a payment of $400 was made on 9/21. The billing date is 10/1. (a) Find the average daily balance. (b) If the finance rate is 2.17% per month, what is the finance charge?

Learn how to calculate the average daily balance and finance charge for a credit card account with a $775 balance and transactions. This problem covers average balance calculations and finance charge computation with a 2.17% monthly finance rate.

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