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The problem asks to find the balance due on April 1 using the **average daily balance** method for calculating interest. Here's how we proceed:

### Transactions:
- Previous balance: $6340 (as of March 1)
- March 5: Payment of $300 (credit)
- March 7: Charge for Restaurant: $40
- March 12: Charge for Groceries: $100
- March 21: Charge for Car Repairs: $260

### Steps:

1. **Calculate Daily Balances:**
   We need to compute the daily balances after each transaction and for each period between transactions:

   - From March 1 to March 5 (4 days): Balance = $6340
   - From March 5 to March 7 (2 days): Balance = $6340 - $300 = $6040
   - From March 7 to March 12 (5 days): Balance = $6040 + $40 = $6080
   - From March 12 to March 21 (9 days): Balance = $6080 + $100 = $6180
   - From March 21 to March 31 (10 days): Balance = $6180 + $260 = $6440

2. **Determine the Total Daily Balance Sum:**
   Multiply each balance by the number of days it was active:

   - $6340 for 4 days: $ 6340 \times 4 = 25,360 $
   - $6040 for 2 days: $ 6040 \times 2 = 12,080 $
   - $6080 for 5 days: $ 6080 \times 5 = 30,400 $
   - $6180 for 9 days: $ 6180 \times 9 = 55,620 $
   - $6440 for 10 days: $ 6440 \times 10 = 64,400 $

3. **Calculate the Average Daily Balance:**
   First, sum the products:
   \[
   25,360 + 12,080 + 30,400 + 55,620 + 64,400 = 187,860
   \]

   Next, divide by the number of days in the billing cycle (31 days):
   \[
   \text{Average Daily Balance} = \frac{187,860}{31} = 6060
   \]

4. **Apply the Interest Rate:**
   The monthly interest rate is 2.5% of the average daily balance. So, the interest is:
   \[
   \text{Interest} = 6060 \times 0.025 = 151.50
   \]

5. **Find the Balance Due on April 1:**
   The balance at the end of March (March 31) was $6440. Adding the interest:
   \[
   \text{Balance due} = 6440 + 151.50 = 6591.50
   \]

Thus, the balance due on April 1 is **$6591.50**.

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Would you like further details or clarifications on any part of this process?

### Additional questions for practice:
1. How would the balance change if the interest rate was 3%?
2. What would the balance be if the $300 payment on March 5 was not made?
3. If another charge was added on March 15 for $200, how would that affect the balance?
4. How does the average daily balance method differ from the adjusted balance method?
5. What is the significance of the billing cycle length in interest calculations?

**Tip:** Keeping a record of transactions and calculating daily balances can help you predict future balances more effectively.

The credit card uses the average daily balance method to calculate interest. The monthly interest rate is 2.5% of the average daily balance. Calculate the balance due on April 1.

Learn how to calculate credit card interest using the average daily balance method. This problem involves multiple transactions, interest calculations, and finding the final balance due, making it ideal for high school students in Grades 10-12.

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