Math Problem Statement
On April 1, the balance on your credit card is $407.08. On April 8, you make a purchase for $51.90. On April 16, you make a payment of $185. On April 23, you make a purchase for $84.55.
Assume the billing date is the 1st of the month and the monthly finance charge is 1.9%.
What is the average daily balance? $
What is the monthly finance charge? $
What is the balance at the start of the next month? $
Solution
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Math Problem Analysis
Mathematical Concepts
Average Daily Balance
Interest Calculation
Credit Card Finance Charge
Formulas
Average Daily Balance = (Sum of daily balances × number of days at each balance) / Total number of days
Finance Charge = Average Daily Balance × (Monthly Interest Rate / 100)
Next Month Balance = Final Balance + Finance Charge
Theorems

Suitable Grade Level
Grades 912
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