Average Daily Balance

Posted on 2013-12-03 14:34:00 in Finance by CODY

I'm just going to give you all the question so you know 100% what I am asking. :)

Naoko has these daily balances on his credit card for September's billing period. He paid his balance from August billing in full



two days @ $99.78

fifteen days @ $315.64

eleven days @ $515.64

two days @ $580.32



a. His APR is 15.4%. How much is the finance charge on his September bill?

- He doesn't have the finance charge because he paid August in full.



b. Does the credit card company need to calculate his average daily balance? Explain.

-This is what I need help on... I want to say no because the ADB is used to find the finance charge... But he doesn't have one this month. So do they...?

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