document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1173027>Question 1173027</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Calculate the average daily balance (in $) for October for a revolving credit account with a previous month's balance of $110 and the following activity. (Round your answer to the nearest cent.)\r<BR>\n" );
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document.write( "Oct 3: cash advance = $50<BR>\n" );
document.write( "Oct 7: payment = $75<BR>\n" );
document.write( "Oct 10: purchase = 29.59<BR>\n" );
document.write( "Oct 16: credit = $30<BR>\n" );
document.write( "Oct 25: purchase = $123.60\r<BR>\n" );
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document.write( "average daily balance = $ _____\r<BR>\n" );
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document.write( "My example had an annual percentage rate to work with and this one doesn't have one to work with. So not sure what to do without the annual percentage rate. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #850787 by </B><A HREF=/tutors/aboutme.mpl?userid=CPhill><B>CPhill(1987)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=CPhill><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=CPhill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=850787\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Let's calculate the average daily balance for October:\r<BR>\n" );
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document.write( "**1. Determine the Daily Balances:**\r<BR>\n" );
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document.write( "* **Oct 1-2:** Balance = $110 (2 days)<BR>\n" );
document.write( "* **Oct 3-6:** Balance = $110 + $50 = $160 (4 days)<BR>\n" );
document.write( "* **Oct 7-9:** Balance = $160 - $75 = $85 (3 days)<BR>\n" );
document.write( "* **Oct 10-15:** Balance = $85 + $29.59 = $114.59 (6 days)<BR>\n" );
document.write( "* **Oct 16-24:** Balance = $114.59 - $30 = $84.59 (9 days)<BR>\n" );
document.write( "* **Oct 25-31:** Balance = $84.59 + $123.60 = $208.19 (7 days)\r<BR>\n" );
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document.write( "**2. Calculate the Sum of Daily Balances:**\r<BR>\n" );
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document.write( "* (2 * $110) + (4 * $160) + (3 * $85) + (6 * $114.59) + (9 * $84.59) + (7 * $208.19)<BR>\n" );
document.write( "* $220 + $640 + $255 + $687.54 + $761.31 + $1457.33 = $4021.18\r<BR>\n" );
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document.write( "**3. Divide by the Number of Days in October (31):**\r<BR>\n" );
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document.write( "* $4021.18 / 31 = $129.71548387\r<BR>\n" );
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document.write( "**4. Round to the Nearest Cent:**\r<BR>\n" );
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document.write( "* $129.72\r<BR>\n" );
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document.write( "**Answer:**\r<BR>\n" );
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document.write( "The average daily balance is $129.72.<BR>\n" );
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