A credit card account had a $207 balance on March 5. A purchase of $137 was made on March 12, and a payment of $175 was made on March 28. Find the average daily balance if the billing date is April 5. (Round your answer to the nearest cent.)

To find the average daily balance, we need to calculate the balance for each period between transactions and weigh the balance based on the number of days in each period.

### Step-by-step process:

1. **Initial balance on March 5:** $207.

2. **March 5 to March 12:**
   - Balance = $207.
   - Number of days = 12 - 5 = 7 days.

3. **March 12 to March 28:**
   - A purchase of $137 was made on March 12, so the new balance is:
     \[
     207 + 137 = 344.
     \]
   - Number of days = 28 - 12 = 16 days.

4. **March 28 to April 5:**
   - A payment of $175 was made on March 28, so the new balance is:
     \[
     344 - 175 = 169.
     \]
   - Number of days = 5 - 28 = 8 days.

### Now, calculate the weighted balance for each period:

- For March 5 to March 12:
  \[
  207 \times 7 = 1449.
  \]

- For March 12 to March 28:
  \[
  344 \times 16 = 5504.
  \]

- For March 28 to April 5:
  \[
  169 \times 8 = 1352.
  \]

### Add the total balance for all periods:
\[
1449 + 5504 + 1352 = 8305.
\]

### Total number of days from March 5 to April 5:
\[
7 + 16 + 8 = 31 \text{ days}.
\]

### Calculate the average daily balance:
\[
\frac{8305}{31} = 267.90.
\]

Thus, the average daily balance is **$267.90**.

Would you like more details or have any questions?

Here are 5 related questions for practice:
1. What would the average daily balance be if the payment on March 28 was $200?
2. How does adding another purchase on April 2 affect the average daily balance?
3. If the billing period changes to March 15, how does the average daily balance change?
4. What if the purchase on March 12 was only $100—what would be the new average daily balance?
5. How do interest rates impact the final amount owed if charged based on the average daily balance?

**Tip:** Always double-check your billing cycle dates when calculating the average daily balance, as it directly impacts interest and payments.

Learn how to calculate the average daily balance of a credit card account with an initial balance of $207, a $137 purchase, and a $175 payment. This step-by-step guide explains the method using weighted sums and balances, suitable for high school students. Example: the average daily balance is $267.90.

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