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Calculate the average daily balance, finance charge, and new balance using the average daily balance method.Monthly rate = 1.75�tePayments PurchasesBalanceNumber of Days Product/Sum9/1 - 9/5387.5251,937.609/650.00337.521337.529/7 - 9/189/1962.66400.181400.189/20 - 9/30Total30The average daily balance =30 =Finance charge = monthly rate x average daily balance = New balance = previous balance - payment/credits finance charge new purchases =
Calculate the average daily balance, finance charge, and new balance …
Jan 18, 2023
numerade.com
Do you know that your Average Daily Balance (ADB) is the basis to compute for the interest your account earns for a period? ADB is computed as the sum of your daily balances divided by the number of days per month. In order to earn interest, deposit accounts usually require a minimum monthly ADB. Interest is credited to your account at quarter end. A minimum balance requirement, on the other hand, is the amount of money you need to keep in your account to avoid incurring service charges. The amo
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