Question

Jack decided to apply for the UltraCard. He met the requirements and was approved. Jack made several purchases the first month he had the credit card. The table shows his daily balances for the month.

Jack’s Daily Credit Card Account Balance
Billing Cycle: 30 Days
Period Days Daily Balance
day 1 to day 9 9 $150.00
day 10 to day 13 4 $212.48
day 14 to day 18 5 $243.17
day 19 to day 26 8 $623.42
day 27 to day 30 4 $833.89
Select the correct answer from each drop-down menu. Use this resource, if needed, and the table to complete the statements.

The average daily balance of Jack’s new credit card account is
. The finance charge that Jack can expect on his first credit card statement is
.

Answer 1

The average daily balance of Jack's new credit card account is $391.29 and the finance charge that Jack can expect on his first credit card statement is closest to $141.

What is the average daily balance?

The average daily balance is computed as the mean of the daily balances on a person's credit card account after they are multiplied by the number of days for each daily balance.

Data and Calculations:

Period                 Days     Daily Balance     Product/Sum

day 1 to day 9       9            $150.00          $1,350.00 ($150 x 9)

day 10 to day 13   4             $212.48            $849.92 ($212.48 x 4)

day 14 to day 18   5             $243.17           $1,215.85 ($243.17 x 5)

day 19 to day 26  8            $623.42         $4,987.36 ($623.42 x 8)

day 27 to day 30 4            $833.89         $3,335.56 ($833.89 x 4)

Total                   30                                   $11,738.69

Average daily balance = $391.29 ($11,738.69/30)

The finance charge = $140.86 ($391.29 x 1.2% x 30) or ($11,738.69 x 1.2%)

Thus, the average daily balance of Jack's new credit card account is $391.29 with a finance charge of about $141.

Learn more about computing credit card average daily balance here: brainly.com/question/4403314